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Stages of Investing in India for NRIs

Investing in India involves three key stages: Pre-Investment, At the Time of Investment, and Post-Investment.

A) Pre-Investment Stage: Preparation Before Investment

1. Obtain Required Identification:

   • Get a PAN Card

   • Get an Aadhaar Card (Refer to relevant blog articles for detailed procedures)

2. Open Bank Accounts:

   • NRE (Non-Resident External) Account

   • NRO (Non-Resident Ordinary) Account

   • Fund the accounts accordingly (Refer to relevant blog articles for more details)

3. Open a DEMAT Account:

   • To trade in shares, open a DEMAT account with any bank or financial institution.

   • Complete the KYC (Know Your Customer) process, which typically requires identification documents such as a PAN card.

B) At the Time of Investment Stage: Executing the Investment

1. Review Investment Options:

   • Evaluate alternative investment options based on risk, returns, features, and alignment with your goals.

2. Check Policies and Regulations:

   • Review relevant policies (e.g., Foreign Direct Investment policy) and regulations related to your investments.

3. Execute Investment Decisions:

   • Make informed investment decisions and fund the investments.

   • Seek professional assistance if needed.

C) Post-Investment Stage: Managing Investments

1. Periodic Reviews and Adjustments:

   • Regularly review and adjust your investments based on actual performance and changing financial goals.

2. Record Keeping and Accounting:

   • Maintain accurate records and accounting for all investments made.

3. File Income Tax Returns:

   • File income tax returns in India to declare Indian income.

   • Ensure compliance with local taxation requirements in your country of residence.

   • OCI individuals living in India must file tax returns on global income both in India and their country of citizenship, such as the USA (Refer to relevant blog articles for more information).