Investment Opportunities for NRIs
NRIs have a wide range of investment options in India, including:
- Government Securities: Invest through primary dealers with full security.
- Corporate Debt Instruments: Non-convertible debentures, fixed deposits with public companies, commercial papers, and bonds issued by Public Sector Units (PSUs).
- Mutual Funds: Invest on both repatriable and non-repatriable basis, with no cap on domestic mutual fund investments.
- Equity & Convertible Debentures: Invest in shares and convertible debentures of Indian companies (excluding plantation, real estate, and agricultural sectors), in both primary and secondary markets.
- Immovable Property: NRIs and PIOs can invest in property using funds from abroad or NRE/FCNR accounts and rent it out freely.
Note: NRIs are no longer permitted to invest in certain bearer securities (like Indira Vikas Patra, Kisan Vikas Patra, NSC, PPF, RBI Bonds, Senior Citizen Savings Scheme 2004), but existing investments will continue to persist.
Understanding Tax Liability
Your tax obligations in India depend on your residential status:
- Resident: Taxed on worldwide income.
- Not Ordinarily Resident (NOR): Taxed on income earned in India and income earned abroad from a business/profession controlled in India.
- Non-Resident: Taxed only on income earned in India.
Avoiding Double Taxation:
India has agreements with many countries to prevent double taxation, ensuring you are not taxed twice on the same income.
Disclaimer: The information provided here is for educational purposes only. We act solely as distributors to execute transactions based on investors’ instructions.