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How to Manage Your Indian Finances While Living Abroad

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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.

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