Mutual Fund – Banking and Finance – NRI

Hi, Non Residents Indians and Persons of Indian Origin can invest in mutual fund schemes in India. In case of NRIs no special approval is to be sought from authorities such as the RBI. They can invest in mutual funds on repatriable basis or non-repatriable basis. To invest on a repatriable basis you must have an NRE account or FCNR account with a bank in India. In this case the investment money should be remitted through usual banking channels or from the NRE/FCNR account of the NRI investor.  Investment can be made on a non-repatriation basis as well with investment funds being provided from NRO account or NRE/FCNR account of the investor. Balances held in NRE accounts can be repatriated abroad freely, whereas funds in NRO accounts cannot be remitted abroad but have to be used only for local payments in rupees. So, NRE or NRO? You need to select based on your requirements. Regarding Taxation part, kindly read : https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/ https://www.relakhs.com/10-ltcg-tax-equities-budget-2018/ https://www.relakhs.com/budget-2018-ltcg-tax-funds-implications/   Home Loan :  The repayment of loan through equated monthly installments can be made either through the NRO account or through the NRE account ECS for the existing home loan can continue from the NRO account. Check with your bankers for any additional paperwork that may be required. You may need to give a fresh ECS mandate if the bank account is converted into an NRO account. It is also possible to make the repayment of your home loan from the NRE account. I believe that NRIs are allowed to remit up to $1 million from the sale proceeds of property in India from their NRO account.  Suggest you to consult a CA in this regard (when sale happens) for more info. PPF : As per the latest notification by the Govt, an NRI can not make contributions to PPF and has to close his/her PPF account. Kindly read : https://www.relakhs.com/latest-amendments-nsc-ppf-rules-nris/ LIC Policies: You can continue to hold them and need to update your residential status with them. Existing policies taken while in India will continue in Indian Currency even after your moving to foreign countries as NRI. Please keep the concerned servicing branch of LIC informed about your new status i.e. NRI and your new address. Please submit to them NRI questionnaire form duly filled and signed.  Suggest you to contact your Insurer for more procedural details. Demat Account : An NRI will have to close his/her existing Demat account – the one opened before acquiring NRIstatus. Your demat account, which holds share that you purchased when you were a resident, would need to be transferred to an NRO (Non Resident Ordinary) Demat account. Buying shares from the secondary market requires NRIs to open a PortfolioInvestment Scheme (PINS) account with a bank. As per RBI guidelines, it is important to maintain two separate accounts for repatriable and non-repatriable shares. Under PINS scheme, you can buy stocks using funds from your NRE account, and the sale proceeds will be credited to NRE account for repatriation. However, if you want to buy shares on a non-repatriable basis, then, the returns will be credited to your NRO account. So, accordingly you need to open a new Demat account.