If there is anything in the world that the NRIs wait for the whole year is the vacation period in which they can return to their homeland? This time is for them to visit their friends and family and spend some quality time. If you too are an NRI who is settled in any foreign country but travels to India for personal commitments, you should keep and maintain a personal finance checklist as well. This checklist must include the following items so that you do not fail to look after your financial possessions. There are certain activities that require your attention at least once in a year to maintain a smooth financial flow. Therefore, you must refer to this checklist to manage your money efficiently during your next visit to India.
Check your NRI Account
If you do not have an NRI account, the first thing you should do is visit a reputed bank and open one. It is always advisable by financial experts to open both types of NRI accounts, that is, the NRE (Non-Resident External) & NRO (Non-Resident Ordinary).
With the help of the former one, you can access the funds in your accounts globally as it provides you rupees in India and foreign currencies in other countries whereas the latter one is more of a savings account that can be used for keeping income earned from India. These account holders are entitled to obtain credit/debit cards that are valid globally so you can easily access your money no matter where you want to do so. However, facilities of these accounts vary from bank to bank for which you are advised to do quick market research and compare the available options.
Get your KYC updated
The introduction of the KYC (Know Your Customer) service has completely changed the face of banking facilities in India. For accessing your existing bank accounts seamlessly, you must register and get your KYC updated with banks. If you already have one, make sure that it is registered with non-resident status.
Look after your tax returns
Paying your taxes annually and filing the tax returns is not an obligation but a responsibility. Your visit to India must have this task at the top of your list. Refer to a tax consultant, if needed, and complete all the formalities and declarations related to your income as an NRI. You should help in the growth of your country and abide by your tax duties sincerely.
Check the status of PPF account
The government of India does not permit the NRIs to maintain their PPF (Public Provident Fund) beyond its original defined term of 15 years. While if you are in India, you should check the status of your PPF account and if it’s close to the term of completion, complete the required formalities.
Consolidate your investments
Your existing investments in India need to be monitored by you in your physical presence and complete the due formalities if there are any. Like an NRI needs to possess a PIS (Portfolio Investment Scheme) permit for being eligible for investments in equities and mutual funds so if you do not have one, do the needful to obtain it.
Update all your bank accounts
Although the digital banking facilities have enabled all of us to maintain our accounts through the net banking facilities, it is highly recommended to NRIs to make a physical appearance in their banks and check whether everything is updated or not.
So this is the checklist that should be ticked off by you every time you travel to India so as to keep in touch with your country’s banking facilities as well as making sure that your personal interests are also monitored properly.