“ India has an DTAA with many nations. If an NRI based in the US makes short-term capital gains from equity investments in India, he pays 15% tax. However, the rate for such gains is 30% in the US. The investor will need to pay tax only for the difference in rate. This means he gets a deduction on the tax paid in India from his tax payable in the US.”
The Double Tax Avoidance Agreement (DTAA) or Tax Treaty is essentially bilateral agreements entered into between two countries, in our case, between India and another foreign state. The basic objective is to avoid taxation of income in both the countries . Currently India has comprehensive DTAA or Tax Treaty with a number of countries. Therefor,the NRI will be spared from paying tax twice.
For NRI Investors ,most US-registered mutual fund companies which have India operations do not accept investments from Indians living in the US as they are bound by the cap on the number of non-resident investors they can take.
As NRI, if you want to take advantage of the high growth back home, you can do so by investing in stocks and mutual funds by following some simple steps. Integrity Investment & Wealth Advisory Services can help you in your Investment decisions.
|KYC for NRIs||Who's an NRI?|
|Submission of passport copy is mandatory.||A person who has been in India for 182 days or more during a financial year and 365 days or more during the preceding four financial years qualifies as a resident of India.|
|Overseas address||NRIs can continue to enjoy non-resident status in India if their presence in the country is more than 60 days but less than 182 days in a financial year, even if their stay in India during the past four financial years is 365 days or more. A person, who has been deputed overseas for more than 6 months, also qualifies for non-resident status.|
|TAX LIABILITIES OF NRIs|
|NRI earnings from investments in India is taxed at the rate given below:|
|EQUITY FUNDS/STOCKS||DEBT FUNDS|
|Short-term Capital Gains Tax||15%||As per tax slab|
|Long-term Capital Gains Tax||Nil||10% without indexation, 20% with indexation|
|Dividend Distribution Tax||Nil||25% on liquid funds, 12.5% on other debt funds|
|Total NRI investment should not go beyond 10% of the paid-up capital of a company.|
We have emerged as the industry leaders in providing NRI services to our clients that are highly dependable and efficient. Our NRI services are as follows: