India, as an investment destination for NRIs
India is becoming a good destination to earn tax-free income (at India & Australia as well) for NRIs under the category of Insurance products. Reasons listed as below:
1. The interest rate differential between India and Australia
One will enjoy better annuities at India investments, as the interest rates are higher in the country. Thus, you enjoy higher payouts for your retirement needs.
2. Low rate of devaluation of INR
If you look at the short term, it is a general opinion, that Rupee is depreciating fast. When you look at a time horizon of about 20 years the annual compounded depreciation rate works out to 2.82% only.
3. GST exempt to NRIs
When you as NRI, pay the insurance premium in India, you are exempt from paying GST @ 4.5% of first-year and 2.25% of subsequent years. This is definitely a huge plus for NRIs which benefit is not there in the case of residents.
4. Tax exemption at Australia
The maturities are tax exempt at Australia, if policy term is 10 years or more. Such maturities are tax exempt in India as well.
5. Hassle fee documentation
The investment process is online and doesn’t even require any bank account or visits to India.
So, in all, a must consider while you plan for tax and long-term goals.