How to Manage Your Indian Finances While Living Abroad

How to Manage Your Indian Finances

Managing finances in India while living overseas as an NRI requires planning, the right tools, and regular reviews. Here’s a clear and actionable guide to help you stay on top of your Indian financial life:

1. Open and Maintain the Right NRI Bank Accounts
   • Open 3 essential accounts:
     1. NRE (Non-Resident External) – for tax-free foreign income and full repatriation
     2. NRO (Non-Resident Ordinary) – for managing income generated in India like rent, interest, or dividends
     3. FCNR (Foreign Currency Non-Resident) – for fixed deposits in foreign currency, shielding from exchange rate risk
2. Automate Your Finances
   • Set up automatic payments for:
     1. Mutual fund SIPs
     2. Utility bills
     3. Loan EMIs
     4. Insurance premiums
   • Use mobile apps and net banking to keep track of cash flows
3. Track Your Indian Income Sources
   • Monitor the following:
     1. Rental income
     2. Interest from NRO FDs or savings
     3. Capital gains from stocks or property
     4. Dividends from Indian shares and mutual funds
4. Fulfill Your Tax Obligations
   • File an ITR in India if:
     1. Your income in India exceeds ₹2.5 lakh in a financial year
     2. You want to claim TDS refunds
     3. You hold assets in India that require reporting
   • Know key forms:
     1. Form 15CA and 15CB – needed for repatriating funds from NRO
     2. Form 26AS – to track TDS deducted
5. Repatriate Funds the Right Way
   • Use your NRE account for easy repatriation
   • For NRO funds, get a CA to issue:
     1. Form 15CB – certification of source of funds
     2. Form 15CA – declaration by remitter on tax compliance
   • RBI allows up to USD 1 million per financial year to be repatriated from NRO
6. Review and Diversify Investments
   • Choose from NRI-eligible options:
     1. Mutual funds (via NRE/NRO accounts)
     2. Indian stocks (through PIS route)
     3. Fixed deposits
     4. Real estate
   • Explore newer routes like:
     1. GIFT City investments
     2. Global investing apps via LRS
   • Balance across asset classes for long-term stability
7. Appoint a Reliable Power of Attorney (POA)
   • Choose someone you trust for financial and legal tasks in India
   • Ensure POA is legally registered with clear terms and boundaries
8. Digitize and Secure Your Financial Records
   • Store digital copies of:
     1. PAN, Passport, OCI
     2. Account statements
     3. Investment proofs
     4. Property documents
   • Use secure cloud storage or password-protected folders
9. Conduct an Annual Financial Review
   • Once a year, assess:
     1. Investment performance
     2. Changes in tax rules
     3. Required updates in nomination or POA
     4. Currency exposure and repatriation strategy

Following these 9 steps can help NRIs manage their Indian finances smoothly, avoid compliance issues, and build long-term wealth with confidence.