The holiday season brings a wave of excitement for many Non-Resident Indians (NRIs) who look forward to reconnecting with their families and celebrating Christmas in the land of their roots. While family reunions and festive celebrations are top priorities, it’s also an ideal time for NRIs to manage their financial, legal, and personal affairs to ensure a smooth transition between countries and prevent future complications. Here are ten important things that NRIs should consider doing during their visit to India this Christmas vacation:
Update KYC for Bank Accounts and Investments
Your Know Your Customer (KYC) information is essential for completing banking transactions and managing your investments. If you have any bank accounts, mutual funds, or other investment accounts in India, ensure that your KYC details are updated. This can prevent any disruptions in your financial transactions, especially if you’re planning on making large withdrawals, transfers, or investments during your visit.
Review NRO/NRE Accounts
Many NRIs maintain Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts in India for handling their income and savings. When you visit India, take the time to review your accounts and evaluate whether any consolidation, liquidation, or changes are needed. Managing inactive or underperforming accounts can simplify your financial structure and help you make the most of your assets.
Update PAN Details
Ensure that the status of your Permanent Account Number (PAN) is Active. The PAN may get Inoperative due to non-filing of Income tax returns in India. The PAN needs to be active for smooth financial transactions, filing taxes, and maintaining other records in India. Additionally, check whether there are any updates or corrections needed in your PAN details, such as your address, mobile number, or other personal information.
Reassess Real Estate Investments
If you own property in India, take the opportunity to personally visit your real estate holdings. Whether it’s a rental property or a vacation home, assess its condition and check if any maintenance work is required. Ensure that all property taxes are paid up to date and consider getting property insurance for added security and peace of mind.
Resolve Tax Filings
Before you leave India, ensure that your tax filings are current. If you’ve missed filing for any previous year, consult a Chartered Accountant (CA) to resolve any outstanding tax liabilities. Being proactive about tax compliance will prevent penalties and complications later. Additionally, consult a CA about your tax obligations in India and how they might intersect with your home country’s tax system.
Review Insurance Policies
Take the time to review your insurance policies while you are in India. This includes your life, health, and property insurance. Check the status of your existing policies and ensure that your coverage meets your current needs. If any policies have lapsed, consider renewing them or upgrading your coverage. It’s also an excellent time to discuss with your insurer any additional policies you may need based on life changes, health status, or financial goals.
Execute Will and Estate Planning
It is critical to have your estate planning documents in place, particularly if you have assets in multiple countries. Review your Will, Power of Attorney, and other legal documents to ensure they reflect your current wishes. If you haven’t updated them in a while, or if there have been major life changes (like marriage, childbirth, or acquiring assets), it’s advisable to make the necessary revisions to avoid future legal complications.
Verify Investment Portfolio
Evaluate your investment portfolio while in India. Take the opportunity to review your current investments, including stocks, bonds, mutual funds, and other financial assets. Assess whether they align with your current financial goals and risk tolerance. Consider consulting with your financial advisor or CA to reallocate investments or explore new opportunities, especially if you anticipate changes in your financial circumstances.
Reconnect with Financial Advisors
Christmas vacation is a good time to reconnect with your financial advisors, whether they are Chartered Accountants (CAs), lawyers, or investment specialists. Schedule meetings to review your financial situation, discuss potential tax-saving strategies, and get advice on new investment opportunities that you can explore both in India and abroad. Their expertise can help you make informed decisions about your wealth management, taxes, and long-term financial planning.onds, mutual funds, and other financial assets. Assess whether they align with your current financial goals and risk tolerance. Consider consulting with your financial advisor or CA to reallocate investments or explore new opportunities, especially if you anticipate changes in your financial circumstances.
Manage Family Succession and Legal Documents
As you spend time with family, it’s a good idea to discuss matters of family succession and inheritance. Ensure that all legal documents related to your estate and succession planning are up-to-date. Having clarity on these matters can prevent family disputes in the future and provide peace of mind that your wishes will be honored. If necessary, consult with a lawyer to ensure that all documents, including Wills and trusts, are legally sound.
Conclusion
While the Christmas vacation is a time for celebration, it also offers a perfect opportunity for NRIs to address important financial and legal matters that are often harder to manage from abroad. By taking the time to update accounts, review investments, and consult with professionals, you can ensure that your financial and legal affairs are in order and reduce stress throughout the year. A little bit of proactive planning during your holiday visit can go a long way in making your financial life simpler and more secure, allowing you to focus on family and festive celebrations.
Make sure you tick off these important tasks during your visit and enjoy a worry-free, festive season in India!
