Who is NRI?
NRI is abbreviated by Non-Resident an Indian. The person who is residing outside India more than 182 days or permanently is called as NRI. NRI is Indian citizen who migrated to other country from India for various purposes.
Investment of NRI
Normally, investors (NRIs) invest in real estates. In India now NRI have option on investing on mutual funds. But there are some regulations which needed to be followed and before they invest.
Can NRI invest in mutual funds?
Why NRI invest in mutual funds?
Investors get more beneficial from mutual funds instead of investing directly in the stocks or in fixed deposits.
NRIs are accepted to invest in mutual funds. Except US and Canadian NRIs other NRIs can invest on mutual funds without any restrictions. Those in US and Canadian NRIs can only invest in L&T and Sundaram Mutual funds at present. NRIs are also need to analyze the tax slabs for their better returns.
Taxation on mutual funds as on (2014 – 2015)
|Fund type||STCG Tax||LTCG Tax|
|Debt||30%||Listed – 20%, Unlisted – 10%|
Mutual fund units are treated as capital assets and capital gain tax is been applied in India. If it is more than 12 months LTCG is applicable. For dividends received, there is no tax to be paid. Indexation benefits are available for LTCG. TDS is applies for capital gain tax. There is no wealth tax for mutual funds.