41 thoughts on “7 Best Investments for NRIs looking to invest in India”

  1. People choose an investment product based on many factors. They are extra cautious when it comes to putting in money. Such tips and ideas really help.

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  2. Hi, I am NRI and I deposit my money in liquid fund/short term bonds, debt funds. Is there any limit for depositing money into it? Also, this month I took a big bank loan in Dubai (work place). Now, I want to transfer this amount into my NRE A/c. I am thinking to transfer this big amount in one time. Is it ok to do so?

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    • I think you can deploy funds directly into NCD’s for which NRIs are eligible. NCDs make great investment options for yields between 11-14% p.a. as compared to Bank Fixed Deposits.

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  3. Investment is real estate in India is not so attractive these days. Its better for NRIs to select from other investing options.

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  4. Dear Sir/madam,
    I am an NRI and have an NRE and PIS account in Indusind bank. These accounts are linked to my DEMAT account in Karvy. My DEMAT is NRE with repatriable.
    I would like to buy “11.95% karur Vysya Bank LTD Tier2 Basel3 debt bonds”.
    Can you please let me know if the interest that I earn on these investment is taxed/ TDS. I heard that the interest will be credited to my NRE account each year on 12 March. If it is taxed, what is the tax slab applicable?
    Looking forward to hearing from you

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  5. Thanks for sharing the valuable information about safe investing tips for NRIs looking to invest in India. Nice information!

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  6. Which is best share broker (SEBI registered) who can offer all 3 services + platform to purchase stock online from any part of the world? Any suggestion.

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    • The Stock Brokers in India are only allowed to purchase shares from Indian Stock Exchanges like NSE, BSE and MCX.

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  7. Too many restrictions on NRIs to invest in India like in mutual funds and stock trading. I think a bit relaxation should be given. This way more funds can flow into the country easily.

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    • The restrictions in investing in MF is only for USA and Canada based NRI’s. There is no restriction for NRI’s from other parts of the world.

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  8. Appreciate the post. As NRI’s, we have booked a flat from Nest Habitation. However, we aren’t able to buy 3 acres of agricultural land on the outskirts of Coimbatore easily. Any suggestion is highly appreciated.

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    • I think NRIs can’t buy agricultural land in India. You need to take RBI approval which is not easy and is based on individual circumstances. You can acquire agricultural land only by inheritance.

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    • NRI’s can only buy Residential land/flat or Commercial property. As per FEMA guidelines they are not allowed to purchase agricultural land. But, they can hold such Agricultural land if they get it through Inheritance.

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  9. Really a good article, as all options are explained in detail. Thank you very much.
    I did share this site with my friends as well.

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  10. Managing their finances in the home country is one of the primary concerns of most Indians as soon as their tag changes to an NRI (Non-Resident Indian). Knowing the right account services based on the interest rate, purpose, repatriation requirement, tax obligation etc makes their money management so much easier. But, where can someone find about these topics? Well, you’ve reached the right spot. Thanks for sharing the useful information.

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  11. This is really a comprehensive article and addresses all the NRI investment opportunities in a neat format. Kuddos to the author! I feel out of all the investment options, real estate seems to be of my interest.Thanks for the info.Great post once again!

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  12. Thanks for the detailed explanation on the PPF account for Resident to NRI’s, but recently the government has announced that the contributions made by NRI’s will no longer get the same interest rate from the date of which their residential status changed to NRI and PPF account would deemed closed. In this context, can the Government impose a rule retrospectively? If the rule says from this year onwards the NRI should not contribute to PPF accounts that makes sense, but as an investor I had been contributing to PPF account as per the old rules? Is there a legal recourse to this new rule. Based on the revised rule can I withdraw the balance in PPF account immediately before the actual maturity of 15 years as it doesn’t yield the same interest rate as per earlier rule.

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    • Hi, I have also been investing in PPF account.I don’t think there shall be any retrospective rule. The interest that you have already earned in the previous years may not be affected.Yes, but now your account shall not earn interest rate applicable on PPF as it used to be earlier. Further,this may be for the new investors who subsequently become NRIs after opening PPF account( after the amendment date). Hoping to see some relaxation and clarification on it.
      Logically also the reduced rate of interest should apply from the date of notification.Really hope this has no affect on existing accumulated deposits of NRIs who were continuing their PPF accounts as per previous rules. Otherwise it shall be a big hit on their savings.
      You will have to check with the respective bank where you have your PPF account for the withdrawal procedure and other details.We need to wait for further clarification on this matter. Hope for the best !

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  13. Hi,I am NRI and there are many others like me who look for feasible investing options in India.Thanks for such an informative article.

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  14. Hi Thanks you for the nice article, which is very helpful. I have a PPF account opened in 2006 in SBI. Now I converted as NRI.
    Can I continue invest in existing PPF account?
    Also can I extend PPF account further 5 years once the 15 years term is over?

    Thank you for helping.

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    • Thanks for your appreciation. If you opened a PPF account while you were a Resident Indian, you are allowed to maintain it further and contribute to it till maturity. But,An NRI cannot extend the PPF account with contribution after maturity. So,this means you can not make any contributions after completion of 15 years i.e. you won’t get an extension of further 5 years with contribution .This facility is available to Resident Indians only. Also,NRIs are not eligible for opening fresh PPF accounts. Do check with your bank if they need any additional requirement/documents as you are an NRI now.

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  15. Hi, Thanks for sharing such a detailed post on NRI Investments.Its really a great help for NRIs like me who are looking for different ways to invest their money in the correct manner.

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  16. Hi,

    My friend has invested some money in demat account of sbi few years back before he left to USA. Now he is planning to settle in US itself and may not come back to India. How can he repatriate the investment in Indian stocks which are linked to Indian savings account. Now he has both NRE and NRO account but not linked to earlier investments.

    Appreciate if you could guide.

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    • Hi,
      At the time of redemption, the money comes back to the account from which you’ve invested.
      I think your friend will be able to take it to his NRE account & repatriate outside only to that extent that money was contributed from an overseas bank account or through an NRE account.
      Money invested from NRE is freely repatriable outside India whereas money invested from NRO has some restrictions.Moreover,if one becomes an NRI, I don’t think he is allowed to maintain an Indian savings account.Please check for the same.

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  17. National pension scheme (NPS) for NRI if I am starting NPS and in in Dubai now. The account from attached is NRE account. Want to know if I am coming back to India and start working, what will happen to nps. Can I continue the same PRAN no and same nps account

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    • PRAN is a unique identification no.that remains same.You can have only 1 PRAN. But,once you are back in India,you will have change your status to Resident Indian and your bank account status also.You will have to submit a declaration form for shifting your NPS account.

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  18. There are mainly two ways :
    1.Cash or Receipt basis: Here interest income is offered to tax on receipt basis at maturity.You will be eligible to claim TDS credit in the year in which interest income is offered to tax.
    2.Mercantile or accrual basis: When you follow accrual basis for disclosing your interest income,you can claim credit of TDS in the same financial year.Bank has already deducted TDS on accrual basis.
    Therefore,the wise thing to do would be to calculate the interest income that pertains to the financial year,and add it to your Income(though you may not have received any thing) under Income from Other Sources.
    In this way not only will the income that belongs to that financial year will become part of ITR for that year,but you can claim the credit of TDS on it.
    Suppose you wait until the maturity of your FD when interest is actually received,your total interest income(or overall income) may push you up a tax slab and you may end up paying higher taxes.
    This is a generalised opinion and not any professional advice.Do take help of your professional consultant if need arises.

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  19. Hi,

    My bank in India (ICICI Bank) has deducted TDS on accrued interest on my NRO Fixed Deposits with them, even though they have not paid any interest on these into my Savings account. They say these FDs are Cumulative Fixed Deposits (Reinvestment) and interest remains in my FD, and will be paid to me upon maturity together with the principal amount. The maturity of these FDs is staggered to mature every year for next 9 years.

    As I haven’t received any interest income in my Savings Banks Account, do I need to still show this accrued interest (on these FDs) as my income in my Indian Income Tax returns?
    Or do I need to show this interest income as income only when this interest is credited to my Savings Bank account?
    Will highly appreciate a quick response, as my Income tax return of this assessment year is held up due to this?
    Thanks.

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