Whenever we ask an NRI about there investments in India, they start sharing the list of properties investment which they have done in the last few years.
NRI’s need to understand that Real estate is not the only asset class- In this blog, we will stick to Mutual Funds for NRI’s.
There is a lot of confusion among NRI’s when it comes to investing in mutual funds in India. Hence, let’s discuss in detail about-
- Advantages of investing in mutual funds for NRI
- Can NRI’s invest in Mutual Funds?
- Taxation of Mutual Funds for NRI
Advantages of investing in mutual funds for NRI:
Can NRIs invest in Mutual Funds?
NRI can invest in mutual fund schemes in India with some exceptions on the fund houses for NRIs, based in US and Canada.
Taxation of Mutual Funds for NRI
The taxation rules for mutual funds of residents and NRI’s are almost the same.
For tax on equity-oriented mutual funds, the definition of long term refers to more than 1 year, and otherwise, it is short term.
For debt funds, the definition of long term refers to more than 3 years for taxation, and otherwise, it is short term.
*The TDS is charged at the highest applicable rate (for STCG from debt funds). If the NRI falls in a lower tax slab, he is eligible for a refund when he files his returns.
If you are unsure on how to pick up the right investment, consult a professional financial advisor. Talk to us about your Investment needs and Goals.