Outlook Money
Many non-resident Indians engage in various financial activities such as remittances and investments. The complexity of regulations and insufficient information on certain procedures can be expensive. Therefore, one must take advice to avoid them.
1. Wrong account type- The most frequent mistake is keeping a savings account instead of a specially designated NRI account. Once an individual attains NRI status, all transactions in Indian savings accounts violate FEMA regulations; therefore, one must open and manage an NRO, NRE, or FCNR account based on their needs.
NRIs often forget their tax liabilities such as Tax Deducted at Source on income earned in India which can sometimes get them into trouble and attract penalties. So, one must study the tax provisions of India including those related to income from property, interest, and investment.
Uncontrolled fluctuations in exchange rates can result in significant losses, particularly when rates turn unfavourable. Utilizing hedging instruments tied to currency or timing the execution when rates are advantageous can maximize value transfer.
The real estate sector involves complex legal and regulatory aspects. Numerous NRIs face issues in verifying property ownership titles or outstanding taxes, leading to conflicts. It is advisable to employ a reliable legal advisor to check documents and ensure adherence to local property regulations.
Many NRIs face delays or transaction failures due to missing essential documents like PAN cards, KYC details, or POA (Power of Attorney). So, maintaining updated documentation and ensuring digital copies are easily accessible.