- Date : 20/09/2023
- Read: 3 mins
Explore how steps like online bank account updating, KYC update, giving a Power of Attorney, and filing ITR are important to enjoy a smooth shift to foreign countries.
Are you about to become an NRI soon? If so, you should know about some critical financial tasks you need to perform before you move overseas. Such activities will ensure a much smoother relocation.
In this article, we will explore this topic to know better!
Highlights
-
You need to understand the terms of your existing insurance policy.
-
After residing abroad for more than 182 days, updating your NRI status is mandatory.
-
Filing a proper Income Tax Return (ITR) is essential before leaving the country
-
NRE accounts enable you to repatriate funds totally.
Understanding Your Residential Status
To be considered a resident-
-
You have to reside in India for 182 days or more during the financial year.
-
You must reside in India for 365 days or more during the four years before that year.
-
You must live in India for at least 60 days in that specific year.
The exceptions are as follows!
-
A citizen of India leaves the country to work abroad.
-
A citizen of India or a person of Indian origin (PIO) visiting India.
Residential status is determined by the first condition if you fail to follow the second one.
Financial Steps
Online Banking and Documentation
Keep bank accounts and Indian phone numbers updated to experience seamless Internet banking and receive important OTPs.
Also Read: PAN Aadhaar Linking: Is Your PAN Inoperative And How To Activate It?
Update Residential Status
It is essential to update your NRI status after residing abroad for 182 days or more to be free from the Foreign Exchange Management Act (FEMA) rules.
KYC Compliance
NRIs must adhere to KYC (know your customer) norms and make investments as per the new residential status.
Health and Life Insurance
Understand your health and life insurance policy terms well and make sure your policy will work in case of any need abroad!
File Income Tax Returns
From July 2021, according to the Income Tax Act, if you are moving abroad but have not filed an incoming tax return for the past two years, you can attract higher penalties.
Also Read: NRI Taxability – The Latest Rules Non-Resident Indians Must Know
Power of Attorney (POA)
You should give power of attorney to someone trustworthy in India to manage all your finances smoothly, like bank accounts, real estate, and property-related transactions.
To Sum Up
Addressing these financial complexities is important. Steps like updating bank accounts, evaluating insurance policies, and understanding KYC norms are vital for a smoother transition from India to anywhere overseas.
Disclaimer: This article is intended for general information and should not be construed as investment, tax, or legal advice. You should obtain independent advice when making such decisions.
Click here for the latest articles.
Are you about to become an NRI soon? If so, you should know about some critical financial tasks you need to perform before you move overseas. Such activities will ensure a much smoother relocation.
In this article, we will explore this topic to know better!
Highlights
-
You need to understand the terms of your existing insurance policy.
-
After residing abroad for more than 182 days, updating your NRI status is mandatory.
-
Filing a proper Income Tax Return (ITR) is essential before leaving the country
-
NRE accounts enable you to repatriate funds totally.
Understanding Your Residential Status
To be considered a resident-
-
You have to reside in India for 182 days or more during the financial year.
-
You must reside in India for 365 days or more during the four years before that year.
-
You must live in India for at least 60 days in that specific year.
The exceptions are as follows!
-
A citizen of India leaves the country to work abroad.
-
A citizen of India or a person of Indian origin (PIO) visiting India.
Residential status is determined by the first condition if you fail to follow the second one.
Financial Steps
Online Banking and Documentation
Keep bank accounts and Indian phone numbers updated to experience seamless Internet banking and receive important OTPs.
Also Read: PAN Aadhaar Linking: Is Your PAN Inoperative And How To Activate It?
Update Residential Status
It is essential to update your NRI status after residing abroad for 182 days or more to be free from the Foreign Exchange Management Act (FEMA) rules.
KYC Compliance
NRIs must adhere to KYC (know your customer) norms and make investments as per the new residential status.
Health and Life Insurance
Understand your health and life insurance policy terms well and make sure your policy will work in case of any need abroad!
File Income Tax Returns
From July 2021, according to the Income Tax Act, if you are moving abroad but have not filed an incoming tax return for the past two years, you can attract higher penalties.
Also Read: NRI Taxability – The Latest Rules Non-Resident Indians Must Know
Power of Attorney (POA)
You should give power of attorney to someone trustworthy in India to manage all your finances smoothly, like bank accounts, real estate, and property-related transactions.
To Sum Up
Addressing these financial complexities is important. Steps like updating bank accounts, evaluating insurance policies, and understanding KYC norms are vital for a smoother transition from India to anywhere overseas.
Disclaimer: This article is intended for general information and should not be construed as investment, tax, or legal advice. You should obtain independent advice when making such decisions.
Click here for the latest articles.
