NRIs can invest in mutual funds
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When an NRI invests in Indian mutual fund schemes using funds from NRE account (repatriable), can the second holder be a resident Indian? What if the primary investor is not a citizen of India?
— Rohit Nadkarni
The Indian law allows an NRI as well as a PIO to invest in Indian mutual funds. An NRI is one who has retained his Indian passport whereas a PIO is an NRI who has subsequently given up Indian citizenship. For both an NRI as well as a PIO, the second holder can be a resident Indian. However, the address and bank account details need to be that of the first holder only.
I want to buy property in India. For this purpose, I will be opening an NRE account and transferring the funds from here. When I sell the property, can I bring back the dollars? I am an US citizen born in Kenya.
— Patel
As per FEMR (Acquisition and transfer of immovable property in India), repatriation of the sale proceeds of immovable property other than agricultural land, farm house, plantation property in India by a Resident Outside India who is a citizen of India or a Person of Indian Origin, is allowable provided the property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of FEMA.
Note that the repatriation of sale proceeds is restricted to not more than two residential properties. There is no restriction on the number in the case of commercial properties.
If and when you sell the property for a profit, you will need to pay capital gains tax. The balance sale proceeds, net of capital gains tax, may be remitted abroad. You would require to furnish a certificate from an Indian chartered accountant certifying the fact that capital gains taxes have been paid.
The writer is director, Wonderland Consultants a tax and financial planning firm. He may be contacted at sandeep.shanbhag@gmail.com
Source: http://www.dnaindia.com/money/comment_nris-can-invest-in-mutual-funds_1404042
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