RupeeVest NRI Services
India has emerged as one of the fastest growing major economies in the world, thus providing plenty of investing opportunities for Non Resident Indians (NRIs). Various factors including government reforms, a strong capital market and a sturdy banking system have only amplified the climate of investment, domestic as well as foreign. This phenomenal growth story has attracted and intensified investments here from all quarters and NRIs having the repute of highest savings rate in the world are looking no beyond than their home country to invest.
Subsequently, the next step for NRIs would be to ascertain how to start investing and take advantage of the growing Indian markets.
This is where RupeeVest comes into the picture - it is an online investment and research platform for Mutual Funds and Corporate Fixed Deposits to help all investors plan and invest their savings in a structured and hassle-free manner using various analytical tools and customized investment solutions.
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NRIs can invest in all Mutual Funds open for investments through RupeeVest.
However, NRIs of USA and Canada have the provision to invest in only six Indian mutual fund houses. This constraint is due to the regulatory compliances under FATCA that the AMCs have to go through. The Mutual Fund houses they can invest in through RupeeVest are mentioned below:- DHFL Pramerica Mutual Fund
- L&T Mutual Fund
- PPFAS Mutual Fund
- Nippon India Mutual Fund
- Sundaram Mutual Fund
- UTI Mutual Fund
It is mandatory for every NRI investor to have an NRE or NRO account with an Indian Bank.
PAN or PERMANENT ACCOUNT NUMBER is mandatory for financial transactions in India.
If you do not have a PAN, kindly follow the link below to get registered.
https://www.tin-nsdl.com/services/pan/pan-index.html
Steps to open an NRI account with RupeeVest are:
For KYC compliant investors- Step 1 - Sign up by filling the account opening form.
- Step 2 - An email will be sent to your registered email id with the pre-filled forms and list of documents to be uploaded.
- Step 3 - Once the documents are duly signed, simply scan and upload the required documents from your dashboard.
- Step 4 - Account usually becomes active for investing in 1-2 working days.
- Step 5 - You will receive an intimation of account activation and you can start investing.
- Step 1 - Sign up by filling the account opening form.
- Step 2 - An email will be sent to your registered email id with the pre-filled forms and list of documents to be submitted.
- Step 3 - Once your documents are ready, we will schedule a pick-up of the same on your preferred date and time. We charge a nominal courier fee for the same.
- Step 4 - We will initiate activation of your account after receiving the documents.
- Step 5 - You will receive an intimation of account activation and you can start investing.
KYC is mandatory for all investors. Non KYC compliant investors need to submit the required documents for KYC compliance along with account activation documents.
The following documents are required for account activation:
| If KYC Compliant | If Non-KYC Compliant |
|---|---|
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You need the following documents IN ADDITION TO the documents required for KYC compliant investor:
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For minors, the guardian must be KYC compliant. Proof of Date of Birth is also required along with the above mentioned documents.
Net Banking: Investor can make the payment through our website or choose to pay later through the payment link which will be sent to the registered email.
RTGS / NEFT: Investor needs to register the NSCCL account in his beneficiary list to make the payment.
RTGS / NEFT beneficiary details:- Beneficiary Name: NSE Clearing - New Mutual Fund Platform
- Beneficiary Bank Name: HDFC Bank Ltd
- Account No: 50200009635552
- IFSC Code: HDFC0000060
- Account Type: Current Account
One Time Mandate (OTM): Investor has to confirm the payment by clicking on the link received on his registered email.
Cheque / DD: Investor can deposit the cheque at any branch of HDFC Bank or send it to RupeeVest for processing the transaction.
Cheque payment details:- Beneficiary Name: NSE Clearing - New Mutual Fund Platform
- Beneficiary Bank Name: HDFC Bank Ltd
- Beneficiary Bank Branch Location: Mumbai
- Account No: 50200009635552
Note: The online payment link is valid for 48 hours and on expiry of the same, a fresh transaction needs to be initiated.
The following table elaborates the taxation pattern for NRIs:
| NRI TAXATION | |
|---|---|
| EQUITY ORIENTED SCHEMES | |
| Short term capital gain (Holding period <=12 months) | 15% |
| Long term capital gain upto Rs 1 Lakh (Holding period >12 months) | NIL |
| Long term capital gain exceeding Rs 1 Lakh (Holding period >12 months) * | 10% |
| OTHER THAN EQUITY ORIENTED SCHEMES | |
| Short term capital gain (Holding period <=36 months) | According to tax slab |
| Long term capital gain (Holding period >36 months) |
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Short term / long term capital gain tax will be deducted at the time of redemption of units.
* Gains incurred til 31st January 2018 will remain exempted from tax. All gains made thereafter this date will be taxed.
What is DTAA (Double Taxation Avoidance Agreement)?
An important aspect of taxation for NRIs is the Double Tax Avoidance Agreement (DTAA). It is essentially a bilateral agreement entered into between two countries that aims to avoid or eliminate double taxation of the same income in two countries.
To give an example, India has a DTAA with the US. If an NRI based in the US makes short-term capital gains from equity investments in India, he pays 15% tax. Let’s assume the rate for such gains is 30% in the US. The investor will need to pay tax only for the difference in rate i.e. 15% in US. This means he gets a deduction on the tax paid in India from his tax payable in the US.
India has Double Taxation Avoidance Agreement (DTAA) with around 85-90 countries.
Repatriation is the process of converting a foreign currency into the currency of one's own country. The NRI investor has the option to invest either on a repatriable or non-repatriable basis according to their choice. The following conditions must be met while choosing:
- Repatriable Basis
- The customer must have an NRE account in India.
- The investment must be made to the AMC by inward remittance through normal banking channels, or by debit to an NRE account of the investor.
- The dividend / interest and maturity proceeds of units may be remitted through normal banking channels or credited to NRE account of the investor, as desired by him subject to payment of applicable tax.
NRE account is freely repatriable (Principal and interest earned).
- Non-Repatriable Basis
- Investments must be made through NRO Bank account.
- The investment must be made to the AMC by inward remittance through normal banking channels or by debit to the NRO account.
The current income in the form of dividends is allowed to be repatriated. NRO account has restricted repatriability of principal amount i.e. permitted remittance allowed is up to USD 1 million net of applicable taxes in a financial year.
Can an Indian resident be my nominee?
Yes, an Indian resident can be your nominee.
Can I invest from a foreign bank account?
No, since Indian mutual fund houses are only allowed to take investments in Indian currency, NRIs can only invest either from NRE or NRO accounts with Indian Banks.
When will the TDS certificate be issued to me?
TDS Certificates (Form 16A) will be dispatched to the investors once every quarter by the respective AMCs.
How is an NRE account different from an NRO account?
NRE account is used to park the foreign earnings of an NRI. They are exempt from tax and both the principal amount and interest can be repatriated.
NRO account is used to manage the earnings of an NRI originating in India. It is taxable and has limited repatriability, the interest amount can be repatriated entirely but the principle amount is subject to repatriation upto USD 1 million net of applicable taxes in a financial year.
Can I appoint a Power of Attorney on my behalf?
No, this provision is not allowed to NRIs as of now.