According to Mudra Portfolio Managers survey, 87 per cent invested in real estate, while 39 per cent had in equities or mutual funds
A very small number of NRIs (Non-Resident-Indians), 2 per cent, never invested in India, whereas the sector which attracts the maximum investment is real estate followed by equities or mutual funds.
A Mudra Portfolio Managers survey revealed the investment trend among the NRIs. According to the survey, 87 per cent invested in real estate, while 39 per cent had in equities or mutual funds.
A section of the NRIs in the Middle East, however, prefer to choose hassle-free investment opportunities outside India due to Indian currency that continues to weaken against the US dollar and other currencies linked to it.
Even though they invest in real estate, they find difficulty while selling because it involves tax deducted at source (TDS).
“At a time when the real estate is not doing well, the NRIs end up getting zero appreciation against their investment as they end up paying most of the appreciation in tax,” said Saroj Kumar, who works in IT sector in Dubai.
“Due to recession there are very few buyers in the market. So if you need money urgently against your investment, you end up losing big money against investment,” he said.
Some NRIs in the Middle East prefer to choose hassle-free investment opportunities outside India due to Indian currency that continues to weaken against the US dollar and other currencies linked to it
Tax procedures like tax deduction account number (TDAN) and TDS Reconciliation Analysis and Correction Enabling System (TRACES) and others confuse them.
It is a different matter that awareness for filing tax returns among NRIs is low due to their residential status and foreign income that is not taxed in India.
According to the survey, only 28 per cent of the NRIs file their tax returns in India regularly, while most of them do not have any clue even about their tax login details. More than 85 per cent NRIs come under this category.
About 75 per cent NRIs have not updated their latest contact details like contact number, email id or address in India in income tax profiles.
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