Most NRIs visit India at least once every year. While they might be eager to come visit India and meet their families and catch up on everything they might have missed out on, they should also consider financial aspects of their house keeping during their visit to India. This will help them get back to their work after this well-deserved break.
If you are an NRI this will be the perfect opportunity for you reflect on financial goals which includes retirement goals, savings plan, education for your children etc..
Some aspects they need to consider when they are visiting India include the following.
Independent medical insurance cover
Most NRIs visiting India have insurance cover in their country of residence. However, such insurance won’t be valid in India if the need arises. Also buying health insurance for you and your families may not that easy if there are pre-existing medical conditions in your family. You might save some money by deferring the purchase of an insurance cover but should God forbid, if you run into an emergency you risk getting into a huge financial debt. Try and evaluate all the medical insurance options that are available to while you are visiting India since it might not be possible once you get back to your life in your country of residence.
Consolidate and update all your bank accounts
You or your family members probably may have multiple resident bank accounts even if you and your family members have been non-residents since many years. Consolidate and update all such accounts and make them easier to manage. It is advisable to have one NRO account for all India generated incomes and one NRE account for all foreign incomes one may wish to repatriate to India.
Consolidate your Investments
You may have made certain investments in India while you were a resident. Consolidate, manage and update all such investments like de-mat accounts that should be converted into non-resident status. This will also help you evaluate the current state of your investment. This might also be an opportunity for you to re-structure your investments.
Consider updating your KYC as a non-resident. This will help you update your bank accounts and investments as a non-resident since KYC will be required for this purpose. Ensure that mobile numbers, PAN and email ids are updated correctly across all investments and bank accounts. It is also advisable to link one of your trusted family members phone number with all investments and bank accounts to facilitate receiving OTP’s if the need arises.
Update PPF account
NRI’s are not permitted to have PPF accounts beyond their original term of fifteen years, it is advisable to close all such accounts when their original term is completed. Do not extend them during your India visit.
File your ITR
It is important that you file all your income tax returns correctly with an NRI status. Remember to collect refund of TDS that you may have paid in excess. It is advisable to consult a professional, a Chartered Account (CA) who can guide you through the refund procedures.
These are some of the things that you should do when you are visiting India to ensure a tension free stay now and, in the future, when you return to India.
Disclaimer: This article has been prepared in good faith on the basis of information available on the date of publication without any independent verification. The Author does not guarantee or warrant the accuracy, reliability, completeness or currency of the information in this publication nor its usefulness in achieving any purpose. The Author will not be liable for any loss, damage, cost or expenses incurred or arising by reason of any person using or relying on information in this publication. Readers are requested to consult a professional before taking any action.
(Author – Sonika Bharati, FCS, LLB, is a Company Secretary in Practice from Delhi and can be contacted at [email protected])