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Whether Non-Resident Indians (NRI) can invest in INDIA?

Yes, Non-Resident Indians (NRIs) can invest in mutual funds in India through their NRE or NRO accounts. However, some mutual fund companies may have restrictions for NRIs from certain countries.

Eligibility

  • NRIs need to have a PAN card.
  • NRIs can complete their KYC online.

Investment process

  • NRIs can invest in mutual funds through the online portals of the Asset Management Companies (AMCs).
  • NRIs can open an NRI account with a mutual fund company like Zerodha or SBI.

Mutual funds for NRIs

  • SBI Mutual Fund offers a variety of NRI investment schemes.
  • Some mutual funds that are good for NRIs include SBI Equity Fund, ICICI Pru Credit Risk Fund, Parag Parikh Long-Term Equity Fund, and UTI Nifty Index Fund.

Other investment options for NRIs

  • NRIs can invest in fixed income instruments like Fixed Deposits (FDs), Government Securities (G-Secs), corporate bonds, and Non-Convertible Debentures (NCDs).

Repatriation of funds

You can invest in mutual funds on a repatriable or non-repatriable basis. If you invest through your NRE account, all the investment proceeds are fully repatriable. However, if you wish to invest from your NRO account, then the proceeds are repatriable only up to USD 1 million cumulatively for all NRO accounts held in India per financial year (April–March)

Any income earned from mutual fund investments by NRIs is subject to taxation in India. The tax rates for NRIs investing in mutual funds are the same as those for resident Indians.

Type of mutual fund

Holding period

Taxation on capital gain on sale before July 23, 2024

Taxation on capital gain on or after July 23, 2024

Taxation on capital gain on or after April 1, 2025

Equity-oriented (equity allocation is 65% or more)

<12 months

15%

20%

20%

Equity- oriented

(equity allocation is 65% or more )

>12

months

Before FY 2024-25: 10%* in excess of INR 1 Lakh for FY 2024-25 and onwards: 10%* in excess of INR 1.25 Lakh

12.5% in excess of INR 1.25 Lakh

12.5% In excess of INR 1.25 Lakh

 

 

 

 

 

Debt-oriented mutual fund (equity allocation is less than 65% but more than 35%) sold before April 1, 2025.

Up to 24 months

(Short-term capital gain)

> 24 months

(Long-term capital gain)

As per your income tax slab

20%+ applicable surcharge and cess with indexation

As per your income tax slab

20%+ applicable surcharge and cess without  indexation

As per your income tax slab

20%+ applicable surcharge and cess without  indexation

Debt-oriented mutual fund (debt allocation is less than 65% but more than 35%) sold after April 1, 2025.

Up to 24 months

(Short-term capital gain) > 24 months

(Long-term capital gain)

Not applicable

Not applicable

As per your income tax slab

12.5% + applicable surcharge and cess without indexation

Specified Mutual funds purchased on or after April 1, 2023 (equity allocation is less than 35%) but sold on or before March 31, 2025.

Deemed Short-term capital gain (irrespective of its holding period)

As per your income tax slab rates

As per your income tax slab rates

As per your income tax slab rates

Specified Mutual funds purchased on or after April 1, 2023 (debt allocation is more than 65%) but sold on or after April 1, 2025.

Deemed Short-term capital gain (irrespective of its holding period)

Not Applicable

Not Applicable

As per your income tax slab rates

 

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