NRI DESK

NRI Desk

A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily moved to another country for six months or more for employment, residence, education or any other purpose.

A Person of Indian Origin (PIO) is a person of Indian origin or ancestry but who is not a citizen of India and is the citizen of another country. A PIO might have been a citizen of India and subsequently taken the citizenship of another country, or have ancestors born in India or other states.

A Non-Resident Indian can have two sources of income; one from overseas which is fully repatriable and one from India which is not fully repatriable, that is, the funds can be taken transferred overseas post-tax deductions as applicable.

For fully repatriable funds, funds earned outside India, NRE accounts are opened or NRE status is attached to the investments made; on the other hand, for non-repatriable funds, funds of Indian origin, NRO accounts are opened or NRO status is attached to the investments.

Are FATCA Details Mandatory?

For all NRI Mutual Fund Investments, FATCA Details are mandatory which include TAX Identification Number Overseas.

What are the Documents required for KYC of NRI Investors:-

Photograph, PAN Card Copy
Passport Copy/ POI Card Copy/OCI Card Copy
Indian Address Proof if different from Passport
Overseas Address Proof

Can US/ Canada NRIs invest in Mutual Funds?

Yes, there are few AMCs that accept investments from US/ Canada NRIs. However, not all AMCs are currently accepting investments from such investors.

List of AMCs accepting US/ Canada NRI Investments :

Axis Mutual Fund
SBI Mutual Fund
UTI Mutual Fund
L&T Mutual Fund
Sundaram Mutual Fund
Birla Sun Life Mutual Fund
DSP Blackrock Mutual Fund
ICICI Prudential Mutual Fund
Reliance Mutual Fund
HDFC Mutual Fund (only USA)
Kotak Mutual Fund
IDFC Mutual Fund

MUTUAL FUND TAXATION

Short Term Capital Gain

Category of Units	Holding Period	Tax Rates under the Act	TDS Rates under the Act for NRIs
Units of Non-equity Oriented Scheme	Less than 3 Years	Taxable at normal rates of taxes applicable to the assesse	34.32%^
Units of an Equity Oriented Scheme	Less than 1 Year	15% + Surcharge as applicable + 4% Cess	15% + 4% Cess

Long Term Capital Gain

Category of Units	Holding Period	Tax Rates under the Act	TDS Rates under the Act for NRIs
Listed Units of a Non-Equity Oriented Scheme	More than 3 Years	20% with indexation + Surcharge as applicable + 4% Cess	22.88%
Unlisted Units of a Non-Equity Oriented Scheme	More than 3 Years	10% without indexation + Surcharge as applicable + 4% Cess	11.44%
Units of an Equity Oriented Scheme	More than 1 Year	10% without indexation + Surcharge as applicable + 4% Cess (grandfathering till 31st Jan 2018)	11.44%

PS. TDS is applicable to NRIs at the time of Redemption, Switch, STP and SWP of the units.

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Laurie Buchanan, PhD