If You Transfer Money To India From Usa Is It Difficult To Bring Back?

Discussion in 'General Discussions' started by ProudIndian, Jan 27, 2023.

  1. ProudIndian

    ProudIndian Gold IL'ite

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    I heard from some people its difficult to bring back once you transfer to india. I want to transfer from usa to indian NRO account which will fetch good interest.

    In future I want to invest in small apartment in india or usa, I haven't decided yet where to buy.

    what are other good safe investment options?

    Please advise.
     
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  2. Thoughtful

    Thoughtful Gold IL'ite

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    Disclaimer: I am not expert in this area, so, please take it for what it is worth.

    While it is possible to get money back from NRO, it is a hassle.

    I would recommend to keep it in the NRE account. I don't think the interest rate between NRE and NRO are much different. You should also consider keeping it as FCNR so that the money remains at the USD ( or whichever foreign currency you invest in ). This means if the dollar grows stronger, you will get the present day rate. One could argue that the rupee could get stronger, but history doesn't point that way.

    In summary, keep it in NRE. No taxes owed to indian government, easy to bring back the money to US and as FCNR, it will hold the USD currency rate.

    I considered investing in real estate in India, but there are somethings which I disliked with it ( and I am not sure if I should put those here ), so, I am not pursuing any further. I am interested to hear others views as well.
     
  3. chanchitra

    chanchitra Platinum IL'ite

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    This is what I know
    1. Nro account - paper work is required though some banks have waives that requirement
    2. Nre account- no paperwork
    3. Family/friends - a person can transfer upto 7lakh and if amouny exceeds is more than 7 lakhs then there is a tcs

    Dollar value will always increase than rupee.
    You can buy 10 k of IBonds in treasury bonds every year. 7% interest.
    Home — TreasuryDirect
     
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  4. shravs3

    shravs3 IL Hall of Fame

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    But some smart( Not sure) people are arguing that in few years rupee will get stronger than USD. No idea how true it is!!
     
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  5. mangaii

    mangaii Finest Post Winner

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    Please don’t play with your money . First and foremost make a decision where to live . Do reach out to people where you want to live and explore the area. Then get some contacts to invest in real estate there. Transferring money back and forth is risk since you never know how the conversion rate will change. fyi if your money is in nro then you need pay taxes in the interest earned and process of transfer is not easy since you need to prove the source of money . Nro money is actually considered to be money from Indian source of income . Nre is your money transferred from another country so you can bring it back any time . Transferring money out of nro is a hassle .
    When it comes to buying home to live as primary don’t time the market . But when you have enough money for due payment
     

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