NRI SERVICES
- Our Servises
- NRI SERVICES
Who is an NRI ?
As per the income tax act, an NRI is an Indian who is in India for at least 182 days in the financial year or 365 days out of the preceding four financial years and 60 days in that year.
An Indian Citizen who stays outside India either for the purpose of carrying out employment or business or vocation.
An Indian Citizen who stays outside India either for the purpose of carrying out employment or business or vocation.
An Indian citizen deputed outside India for a temporary period for his / her employment.
What are the investment avenues where an NRI can invest?
The investment avenues available for the Non-Resident Indians in India are
- Government securities or units of Unit Trust of India
- Non-convertible debentures of Indian companies
- Bank accounts in India
- Investment in securities /shares & convertible debentures of Indian Cos
- Investment in immovable property in India
- Investment in mutual funds in India
- Company deposits.
How is taxation treated for NRI investment?
The tax on capital gain is deducted after considering the indexation benefits wherever applicable, by the AMC.
There are various TDS rates for mutual funds.
For short-term capital gains
- Equity schemes 15%+
- Non-equity schemes 30%+
For long-term capital gains
- Equity schemes 0%
- Non-equity schemes 20%+
| Transaction | STT Rate | LTCG | STCG |
| Delivery based transaction in equity shares or equity | Both buyer and seller pay | Exempt | 15% |
| Non-delivery based transaction in equity | Seller pays 0.025% | Business | Business |
| Redemption of units of an equity-oriented scheme to | Seller pays 0.25% | Exempt | 15% |
Transaction in derivative segment | Seller pays 0.017%. In case of option being exercised. buyers pays 0.017% | Business | Business |
| Sale purchase of debt on SE or otherwise and also of | Nil | 10% flat or 20% with | Treated as normal |
Tax Deducted at Source
- As per regulatory guidelines, tax, as applicable, has to be deducted at source for profits made in the equity market transactions.
- Before crediting sales proceeds, the banker must determine the appropriate tax and deduct it at source.
- The TDS rate varies as per the tenure of the investment. TDS can be classified into long-term capital gain and short-term capital gain.
- In long-term capital gain, if the period of holding is more than one year, then the TDS rate applicable is zero percent.
- In short-term capital gain, if the period of holding is less than one year, then the TDS rate applicable is fifteen percent plus.
It is to be noted that no TDS is charged on losses.
For any TDS to be deducted and money to be credited to the bank account, 3 things need to be verified
- Amount of gain
- Duration of holding, that is, long term or short term
- Source of fund for purchase, that is, NRE or NRO.
In case of non-PIS transaction, such as IPO shares, the NRI has to give the contract note, and demat statement or letter of allotment.
Dividend Taxation
Dividend received from a domestic company or mutual funds is tax free in the hands of an NRI investor.
- 16.99 percent on dividends of a domestic company
- Equity-based schemes of mutual funds are exempt from DDT
- 14.16 percent in case of debt-based schemes of mutual funds
- 28.32 percent in case of liquid schemes
Contact Us
CIN : U67190GJ2015PTC084307
312 / 313, 3rd Floor, Shivani Complex, Near Kaliyawadi Bridge, Beside Collector Office, Kaliyawadi, Navsari - 396445
info@hpwealthadvisory.com
02637 - 280061