Posts Tagged ‘NRIs’

Popular myths & wrong notions about NRI’s

July 26, 2013

There are many myths about NRI’s & immigrants amongst the general population. Most of them are based on assumptions, stereotypes & uninformed perceptions. There are many reasons why foreign citizens immigrate to other nations but a raise in the standard of living is a desire that most have.

This is our attempt to bust myths for the enlightenment of the general public.

Myth 1: NRI’s do not pay taxes

All immigrants pay taxes. They range from property to sales tax. Even undocumented immigrants pay income taxes.

Myth 2: NRI’s slog it out day & night & then send all their earning back to their home country, causing the host nation’s economy a loss.

There is great dissension in a given company where one national is irritated that an NRI works overtime & raises the bar at the workplace, thus causing undue competition. He works extra, earns extra & later collects a hefty sum to send to India. There is no doubt that immigrants send their earning to their families back to their home country. But they do so in addition to their expenditure as an immigrant in the foreign country. Their business contributes $162 billion in tax revenue to U.S federal, state & local governments.

Myth 3: Job opportunities for Americans are taken away by NRIs & other immigrants.

There are various American citizens today who started off as immigrants in the host country & today have reached a position where they are creating jobs for the public- Americans & immigrants alike. The truth is, jobs are created as well US as well as foreign workers by immigrant entrepreneurs. They posses a skill which help them thrive in competition. This does not mean that jobs are stolen, they are simply achieved on the basis of merit.

Are there any other popular myths you know of & would like to bring to our attention? What is your view on the topic listed above?

To know more about NRI Money Transfer and other online banking services you can also visit our website.

Real estate for the eager NRI

April 12, 2013

When it comes to investments and returns NRI’s across the board are ever eager for such opportunities. Making the government even more eager to please and attract such investors from abroad. Real estate is constantly drawing the NRI attention and with a stabilized market looking good, these investors are most ready to buy.

The Reserve Bank of India has permitted those NRI’s with Indian passports and people of Indian Origin, to freely put their money in real estate (residential & commercial) and has increased the number of such investors on account of a depreciating rupee value and the offer of better returns. For reasons sentimental and for a sense of security, a homeland investment makes quite the number of NRI’s happy.

On an interesting note, the RBI along with Foreign Exchange Management Act (FEMA) has made rules and regulations lenient for NRIs, by not only simplifying investments policies, but also providing repatriation of capital involved. While an investment promotional council by the government is further creating a more investment-friendly environment appropriate for NRIs.

How NRI’s can invest in Real Estate?

According to the regulations of FEMA and RBI, an NRI is permitted to make specific investment in real estate and is allowed to do the following investment in property:

1] Any immovable property can be purchased by NRI in India other than any agricultural land, farm house and plantation property.

2] Get any immovable property as mentioned above by gift from an Indian resident, Indian citizen residing outside India or person of Indian Origin.

3] Obtain any property by inheritance.

4] Transfer immovable property to any resident of India by sale.

5] Transfer any agricultural land, farm house or plantation land to any resident of India by gift.

6] Transfer residential or commercial property by means of gift to any person either residing in India or abroad or person of Indian origin.

Sources of Finance
Financial institutions consider the NRI Diaspora, one of the most sought after clientele and aim at offering, such a potential group with valued added terms and services. Keeping in mind that NRIs tend to be prompt at the time of repayment. Not to mention, that inward remittance and return on investments via, rent/dividends are a big bulk of business offered by NRIs.

The RBI has also predetermined norms in home loan for NRIs buying any property:

1] A maximum of 80% amount is financed by the financial institution. Rest should be paid by an NRI.

2] The remittance of the amount for down payment can be done from the place of residence by normal banking channels, i.e., NRO/NRE account in India.

3] Furthermore, an NRI has to repay his principal amount as well as interest part from that similar channel only.

shutterstock_2927364

 

To know more about NRI Money Transfer and other Online Remittance To India services to make your investments choices  you can also visit our website


%d bloggers like this: