The NRI can only open his bank account with RBI-authorised dealers/Banks.
Archives: FAQs
Are NRIs free to open any bank account in India?
An NRI can open Non-Resident External Account, Non-Resident Ordinary Account and Foreign Currency Non-Resident Account.
What is the repatriation of funds?
Repatriation of funds refers to transferring funds held by an NRI from his Indian bank account to bank account of country of his current residence.
How taxable are mutual funds for NRI?
Taxation rules for NRIs and residents of India are alike. For equity mutual funds, the investments made for one year or less will be taxed at 15% per the short-term capital gains taxation rules. For long-term investments, mutual funds are taxed at a rate of 10% per the long-term capital gains taxation rules.
What are NRI KYC documents for a mutual fund?
The checklist for KYC for NRI mutual funds are:
- Cancelled cheque of NRO, NRE, or FCNR bank account.
- Certified Foreign Address Proof – residential permit, latest utility bill, driving license with address, etc.
- Indian address proof – latest utility bill, driving license, Aadhar card, Bank statement, etc.
- Passport – first two and last two pages.
Can NRI claim a TDS refund on mutual funds?
TDS is applicable for NRIs on Mutual Fund Redemption. The rate depends on the type of scheme and the holding period. The TDS rate is charged at the highest applicable rate. When the NRI falls in a lower tax slab, they are eligible for a refund when they file their returns.
Is TDS applicable to capital gains on mutual funds for NRI?
Mutual fund dividends are subject to TDS at 7.5 per cent for dividends above Rs 5,000.
What is the TDS rate on capital gains for NRI?
As an NRI, if a person sells a property in India, the real estate buyer deducts 20% of the Tax Deducted at Source (TDS) as Long-Term Capital Gains Tax for properties sold after two years. For properties sold before the two years, the TDS rate is 30%, deducted as Short-Term Capital Gains Tax.
What is the capital gain tax on mutual funds in India for NRI?
If the investment in mutual funds is held for less than one year, then the capital gains are considered short-term capital gains.
- A short-term tax on capital gains (STCG) applies to equity mutual fund investments that last no more than one year. In this case, the tax rate is 15% of the gains.
- In the case of equity mutual fund investments made for more than one-year, long-term capital gains (LTCG) rules apply. Incremental gains over Rs. 1 lakh in a financial year are taxed at 10%.