Why should NRI Invest in india ?

India has received the largest international remittances that shows a deep connection of NRIs with their roots. Also their preferences as investors for India.

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Lucrative Investment Products for NRIs in India

Direct Equity

You can invest in the Indian Stock Market through the Portfolio Investment Scheme (PIS). You have to open an NRO or NRE bank account. Moreover, you will need a demat and trading account to take part in the Indian equity market.

Mutual Fund

This is another excellent investment option for NRIs. This open-ended investment draws money from many investors to buy securities. This type of investment involves some risk, but usually caters greater returns than other investment plans.

Real Estate Investment

This is another excellent investment option for NRIs. This open-ended investment draws money from many investors to buy securities. This type of investment involves some risk, but usually caters greater returns than other investment plans.

Bonds

This is another excellent investment option for NRIs. This open-ended investment draws money from many investors to buy securities. This type of investment involves some risk, but usually caters greater returns than other investment plans.

Non-convertible Debentures (NCD)

If you are looking for other investment options apart from mutual funds or the stock market, go with NCD. These long-term investments are like fixed deposits but have a higher return. You can make such investments through NRE and NRO accounts.

Government Securities

In this low-risk investment, a bond or debt obligation is issued by the government, which is repaid on maturity. These investments can be long-term or short-term, and the maturity period of securities lies between a few days to 52 weeks.

Certificate of Deposits (CD)

NRIs can get CD from Indian banks whose duration is between 7 days to 1 year. These short-term investments are negotiable instruments, and the investor will get the principal amount along with fixed returns.

National Pension Scheme (NPS)

This is a retirement plan that anyone between 18-60 years of age can avail. Its maturity benefits and withdrawal amount are both taxable. Tier-1 and Tier-2 are the two types of accounts under NPS.

Unlisted Public limited/Pre IPO companies

India is entering into the next league through various startups turning into unicorns. This multiplies the scope and opportunities for NRI investors.

NRI Services

Remittance is the money transfer to his relatives, friends, or family members by an NRI. Remittance should be done through authorized dealer banks, and it requires a certificate issued by a Chartered Accountant in the format given by the Ministry of Finance, Central Board of Direct Taxes, and Government of India.
This is a transaction between two different countries. Such transactions are done between companies, individuals, or banks. In this process, the payment gateway plays a pivotal role as it handles safe fund transfer between the merchant, customer, and this issuing and receiving bank.
Legacy planning is all about the preservation of wealth for the future generation. For legacy planning, NRIs must be aware of the country laws where they live. Some challenges involve looking for estate planning, as you will have an estate in two different countries.
Retirement plans allow you to live the same luxurious life as you used to live in before retirement. Put your hard-earned money in some best Pension plans for NRI, which can fulfill your financial needs post-retirement.
NRI legal consultants usually protect NRIs' interest, and thus they don't have to come to India for this. These lawyers help you in Property matters, criminal litigation in case of any fraud, family and property litigation, passport matters, and human rights violation.
As the financial custodians and trustee for our clients, we ensure that the investments are carried out with highest compliance standards and statutory requirements. Team Rurash Fin comes with the experts who have a sound legal background and are qualified to provide the trustee services. Trusteeship Services offered by Rurash Fin include, Agency & Administration Services, Bond Trusteeship, Alternative Investment Fund Trusts, Infrastructure Investment Trust, Real Estate Investment Trust, Securitization Trust and so on.
We believe in living the promise. As a brand we promise that our investors ‘invest in wealth and create a legacy’. Our concierge services are the full circle services financial services with anything and everything that our client needs in their journey of wealth management. In financial terms, we are the life planners and take care of your financial needs as your personal wealth custodian.

Types of A/c for NRI

In this account, the amount is deposited in Indian currency. You can maintain accounts in the form of recurring, saving, FD, or current account. Good interest rate, easy transfer, anytime access, low balance required is some of the benefits of NRE.

These are saving accounts for managing your income earned in India. The amount can be the rent of your property, pension, interest, dividend, etc. You can maintain an account in the form of saving, recurring, or current. But in this account, a 30% tax will be deducted after withdrawal.

This is the best type of investment for NRIs who want to invest their foreign currency. No risk involved in this account, and both principal and interest amounts are repatriable. Also, the interest rate depends on the currency you deposit. The different currencies will have a different interest rate.

FAQ's NRI

Yes, you can transfer money from NRE to NRO account.

As per FEMA section 6(5), NRI can still hold the securities which he or she bought being an Indian resident, but should transfer shares to his NRO account.

Yes, they can make a direct investment in shares/debentures of mutual funds. They can also create portfolio investments through the stock exchange. Such facilities are available on both repatriation and non-repatriation basis.

As per FEMA, Indian companies should issue bonus shares to non-resident stakeholders. But, adherence to the sectoral cap may be needed.

It is a scheme of RBI under which NRIs can sell or buy securities of Indian companies. For this, NRIs need to apply in the designated bank, which handles Portfolio Investment. All the transactions will be done through that designated branch.

It is mandatory to take the share delivery you purchased before selling it.

Yes, you can transfer your shares as a gift with ease.

Yes, they can subscribe to NPS, governed, and administered by PFRDA (Pension Fund Regulatory and Development Authority). Such subscriptions happen via NRE or FCNR accounts.

Taxation for NRIs

For NRIs, the tax applies to the income earned or accrued in India. He is also liable to pay tax on the income or amount earned through shares, mutual funds, derivatives, NCDs, and other stock exchange securities. The tax imposed depends on the investment period.

Based on the tenure, the capital gain tax can be:

Long Term Capital Gain (LTCG): It is applicable if holding securities' tenure exceeds a year. For debt oriented mutual funds long term means holding the shares for more than three years. This tax applies to the profit earned in stock sales, debentures, mutual funds, FD interest, property, etc.

Short Term Capital Gain (STCG): It is applicable if the holding period is less than a year. For debt oriented mutual funds, short term means holding the shares for less than three years. Like long term, this tax is also applicable to profit earned in stock sales, debentures, mutual funds, FD interest, property, etc.

NRI tax guide


NRI Tax Rate

Segment STCG LTCG
Equity Stock 15% 10%
Mutual Funds (Equity) 15% 10%
Mutual Funds (Debt) 30% 20%
Derivatives (F&O) 30% NA
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