NRI Financial Planning Before Diwali 2026: What to Review in India

VMPL
New Delhi [India], November 4: Diwali is a time to reconnect with family, celebrate traditions and make plans for the year ahead. But if you are an NRI, have you thought about giving your finances in India a quick review, too? Your investments, savings, property and family responsibilities may have changed over the years. With Diwali approaching, it is a good time to revisit these commitments and see if anything needs attention. Whether it is reviewing your investments or managing overseas earnings through an NRE Account, a few timely checks can help you stay organised and make better financial decisions.
1. Review Your NRI Banking Arrangements
Start by checking whether your Indian bank accounts match your current residential status. If you have moved abroad and become a non-resident, you generally need to redesignate your existing resident savings account as an NRO Account.
An NRO Account helps you manage income earned in India, such as rent, pension, dividends and interest. However, transferring money abroad from this account involves certain restrictions. NRIs can generally repatriate up to USD 1 million per financial year from eligible NRO balances and other permitted assets, subject to applicable tax payments, documentation and RBI regulations. Eligible current income can generally be remitted separately, subject to applicable regulations.
An NRE Account, on the other hand, is designed primarily for eligible funds received from abroad. Its balances are freely repatriable. Before Diwali, review your NRO Account transactions, tax obligations and any planned overseas transfers to ensure they meet the applicable requirements.
2. Check Your NRE Account
If you maintain an NRE Account with renowned banks like ICICI Bank, review its balance, transactions and linked services. An NRE Account can help you hold eligible overseas earnings in Indian Rupees. Permitted debits can include local payments, transfers to other NRE or FCNR(B) Accounts and permitted investments in India.
Before Diwali, check:
*        Account balance
*        Recent transactions
*        Standing instructions
*        Linked deposits
*        Nomination details
*        Registered mobile number for timely alerts
*        Email address for latest festive offers and updates
*        KYC status to avoid any transactional disruptions
Interest earned on an NRE Account continues to be exempt under the Income Tax Act, 2025, subject to the applicable conditions.
3. Review Your NRO Account
Your NRO Account helps you manage income earned in India, such as rent, pension, dividends and interest. You can also use it for other permitted local transactions.
Funds held in an NRO Account can be transferred abroad, subject to applicable regulations. NRIs can generally repatriate up to USD 1 million per financial year from eligible NRO balances and other permitted assets. NRIs can generally remit eligible current income, such as rent and dividends, separately, subject to applicable requirements.
Before making a transfer, check the applicable tax obligations and documentation requirements. These may vary depending on the source of funds and purpose of remittance. Reviewing these details in advance can help you plan your overseas transfers more effectively.
Before Diwali, review:
*        Rental income received
*        Interest credited
*        Dividend income
*        Local expenses
*        Tax deducted at source
*        Transfers made during the year
*        Repatriation requirements
Keep supporting documents for significant transactions.
4. Review Your Fixed Deposits
Fixed Deposits can form an important part of an NRI's Indian portfolio. Check the maturity dates of your deposits and the account you used to create each deposit. If your residential status changed after opening a resident Fixed Deposit, confirm whether you need to redesignate the deposit.
Also review whether your deposits are linked to an NRE or NRO banking relationship. Before renewing a deposit, compare the applicable interest rate, tenure and tax treatment with your financial requirements.
Avoid decisions based solely on the festive season. Consider liquidity and your broader financial goals.
5. Review Indian Property
Many NRIs continue to own a house, apartment, land or other property in India. Diwali can be a useful point to review the financial position of these assets.
Check:
*        Current rental income
*        Property-related expenses
*        Home loan outstanding
*        Insurance
*        Property tax payments
*        Maintenance costs
*        Ownership documents
*        Nomination or succession arrangements
If you are considering selling an Indian property, understand the applicable capital gains and TDS requirements before entering into a transaction. Tax treatment can depend on factors such as the asset, holding period, sale date and your residential status.
6. Check Your Indian Investments
Review your Indian investment portfolio before making new investments or redeeming existing ones.
Your portfolio may include:
*        Mutual funds
*        Shares
*        Bonds
*        Fixed Deposits
*        Government securities
*        Insurance-linked investments
*        Other eligible financial assets
Check whether your investment accounts correctly reflect your NRI status.
Also review whether your investment objectives have changed since moving abroad.
An investment strategy that suited you while living in India may need reconsideration after relocation because your income, expenses, currency exposure and financial goals may have changed.
7. Review Your Tax Position
NRI tax planning should not be limited to the tax filing deadline.
Review the Indian income you have received during the year. This can include:
*        Interest
*        Rent
*        Dividends
*        Capital gains
*        Pension
*        Other taxable Indian income
Also check the TDS reflected against your PAN.
The Income Tax Department states that the Income Tax Act, 2025 applies to tax years beginning on or after 1 April 2026. The core NRI taxation provisions have substantially continued under the new Act.
If you are a tax resident in another country, also consider the applicable tax rules there and any relevant Double Taxation Avoidance Agreement.
8. Check Your Tax Residency
Your residential status determines how India taxes your income.
The Income Tax Department states that the basic residential-status tests for individuals remain unchanged under the Income Tax Act, 2025. A person may qualify as a non-resident depending on their stay in India during the relevant tax year and the applicable conditions.
If you frequently travel between India and your country of residence, keep a record of your days of stay in India. This can help you assess your residential status correctly when preparing your tax return.
9. Review Your Loans and EMIs
NRIs may still have home loans, education loans or other financial commitments in India.
Before Diwali, check:
*        Outstanding principal
*        Interest rate
*        EMI amount
*        Repayment account
*        Upcoming payment dates
*        Loan insurance
*        Prepayment requirements
Make sure sufficient funds are available in the account used for repayments.
If your resident account was redesignated as an NRO Account, check whether existing mandates and payment instructions continue to operate as intended.
10. Update KYC and Contact Details
Living abroad often means changes to your address, phone number and tax information.
Review your bank's KYC records and update your information as needed.
Check your:
*        Overseas address
*        Permanent Indian address
*        Passport details
*        Visa or residence information
*        PAN
*        Email address
*        Mobile number
*        FATCA/CRS information
Keeping these details updated can help avoid account servicing issues.
11. Review Your Nominees
Diwali is also a useful time to review nominees across your financial accounts.
Check the nomination details for:
*        NRE Accounts
*        NRO Accounts
*        Fixed Deposits
*        Mutual funds
*        Insurance policies
*        Other eligible investments
Make sure the information reflects your current wishes and family circumstances.
Nomination helps facilitate the transfer or settlement process. Do not treat it as a substitute for appropriate estate planning.
12. Review Your Repatriation Plans
If you plan to move money from India to your country of residence, first understand the applicable account and regulatory requirements.
NRE balances are generally repatriable. NRO balances have specific repatriation rules, including the applicable USD 1 million financial-year facility for eligible balances.
Before making a large transfer, check:
*        Source of funds
*        Account type
*        Applicable tax
*        Supporting documents
*        Foreign exchange conversion
*        Bank charges
*        Repatriation limits
Planning in advance can make the process more organised.
13. Review Your Emergency Fund
NRIs should also consider how much liquidity they need in India.
An emergency fund can cover unexpected expenses such as property repairs, family needs, medical costs or loan repayments.
The appropriate amount depends on your circumstances.
Avoid keeping excessive funds in a low-liquidity investment if you may need them soon. At the same time, consider your overseas emergency fund separately from your Indian financial commitments.
14. Prepare a Financial Checklist for 2026
Before Diwali, create a simple checklist covering your Indian finances.
Review:
*        NRE Account
*        NRO Account
*        Fixed Deposits
*        Investments
*        Property
*        Loans
*        Insurance
*        Tax records
*        KYC
*        Nominees
*        Repatriation plans
*        Emergency funds
Keep important documents securely stored and accessible from abroad.
Conclusion
Diwali 2026 can be a useful opportunity for NRIs to review their Indian financial arrangements.
Start with your banking structure. Check whether your NRE and NRO Accounts are being used for their intended purposes. Then review deposits, investments, property, loans, taxes and nomination details.
RBI's current framework distinguishes clearly between NRE and NRO Accounts. NRE balances are generally repatriable, while NRO balances are subject to specific repatriation conditions.
A regular financial review can help you identify outdated information, upcoming obligations and areas that need attention. It can also make it easier to manage your Indian finances while living abroad.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same.)