India has turned into a splendid investment destination for Non Resident Indians and persons of Indian origin. A growing & robust economy, a strong Rupee and profitable companies have together ensured that investors get maximum returns from both equity and debt markets. A highly transparent and automated stock exchange and a resonant mutual fund industry have ensured that investments are liquid and transparent. Taking advantage of this environment and our proven experience in the market.
We offer the entire gamut of financial planning and advisory services to NRIs and also provide additional services such as tax filing in India.
The following investment avenues are available for the Non-Resident Indians in India
- NRIs are permitted to invest in Government securities through primary dealers.
- NRIs are permitted to purchase non-convertible debentures of Indian Companies, Fixed Deposits with Public Limited Companies, commercial papers issued by Indian companies, bonds issued by Public Sector Units (PSU’s).
NRIs are permitted to invest in mutual funds both on repatriable as well as non repatriable basis. There is no limit for investment in domestic mutual funds.
- NRIs can make investments in shares and convertible debentures of Indian Companies both on repatriation and non repatriation basis. This is provided the company is not involved in plantation, real estate or agricultural business. NRIs can make investments both in the primary as well as secondary market.
- General permission is available to a NRI, being an Indian Citizen, to invest in immovable property in India, provided funds are if from outside India or through NRE/ FCNR accounts. NRIs / PIOs can freely rent out their immovable properties, without seking any permission from RBI.
- NRIs are now not permitted to invest in bearer securities like Indira Vikas Patra/Kisan Vikas Patra, National Savings Certificates , Public Provident Fund, RBI Bonds, Senior Citizen Savings Scheme 2004. Investment already made, if any, shall persist.
Extent of Tax Liability:
Based on the residential status of a tax payer and the place where the income is earned, the income that is included in the total income is as under:
All incomes whether earned in India or outside India
Not Ordinarily Resident:
- Earned in India, and
- All incomes earned outside India if the same is derived from a business which is controlled in India or from a profession which is set up in India.
All incomes earned in India
Double Taxation Avoidance:
Since a resident is liable to pay tax in India on his ‘total world income’, it is possible that he may have to pay tax on his foreign income in that country also. To avoid such a situation the Government of India has entered into agreements for avoidance of ‘double taxation’ with different countries.