NRI Issues

• Long term capital gains tax free hence TDS is zero
• Short term capital gains are taxed at 15% & so the TDS is 15%

For non – equity funds:

• Short term capital gains taxed @ 30% and TDS is 30%.
• Long term capital gains are taxed at 10% without indexation and 20% with indextion
• TDS on long term is @ 20% is deducted on redemption

You can file return and claim refund if applicable

Remittance regulations, a review

As part of its liberalization scheme, the Reserve Bank ofIndiahas over a period of time made it easier for NRIs to remit funds fromIndiato abroad. As of today, balances in the NRE account are freely repatriable. That is, you do not need any permission for remittance abroad for any amount. Broadly, the funds in this account are usually funds deposited from abroad or in some cases, current income like interest or dividends on investments made through foreign funds.

Balances in the NRO account are not freely repatriable. But the RBI does allow NRIs to remit up to USD 1 million per financial year from the NRO account, provided you follow certain procedure. The funds in NRO account are usually from income earned locally, like rent on a property inIndiaor certain capital account transactions like sale of property purchased prior to becoming an NRI.

Remittance procedure

In order to remit funds from the NRO account, you would need to submit two documents: Form 15 CA and Form 15 CB. The purpose of both these documents is to ensure that taxes are collected on the funds before they are remitted abroad as it becomes difficult to recover taxes at a later stage. Both these forms consist of more or less the same information. The only difference is that Form 15CA is an undertaking by the NRI to remit funds while Form 15 CB is a certification of the information by a chartered accountant. Here is the process:

Step 1: Submit Form 15 CA – Undertaking of information

You need to submit this form online on the website of the Tax Information Network www.tin-nsdl.com . This form will consist of the remitter’s information such as name and address of the NRI, permanent account number, complete details of the overseas account to which funds are being remitted etc. It will also contain details of the accountant who will be certifying Form 15 CB.

“After you submit Form 15 CA online, you will get an acknowledgement. You would need to print the acknowledgment, sign it and submit it along with Form 15 CB to the bank,” explains SandeepShanbhag, Director of Wonderland Investments and an expert on all NRI financial matters.
Access: Form 15 CA

Step 2: Submit Form 15 CB – chartered accountant’s certificate

You need to get this certificate from a chartered accountant who will certify that you have paid all taxes due in Indiaon the funds that you plan to remit abroad. The certificate will specify the nature of the amount to be remitted: that is, whether it is the remittance of dividends, interest, royalties received in Indiaor any other income. Your chartered accountant may require you to submit copies of your Tax Residency Certificate, if any, in case you are availing a lower rate of TDS under the Double Taxation Avoidance Agreement.

1. The s are already with you viz., gold, property, FD
2. In addition you may consider NCDs, Corporate Deposits, FMP from MF, short term debt MF that command a high rate in the current scenario
3. A decent low risk option may also be some MIP schemes of mutual funds.

1. Yes you must have a demat account
2. I recommend using a online broker so that you can place trade yourself.
3. PMS is also an option but other trading related products not recommended.

1. Wide variety of options
2. Best in my opinion is for you to open an account with a correspondent bank in US where your family’s Indian bank has a nostro account. That way transfer is fastest and often cost effective.
3. There are many options ranging from bank to portals to western union

1. You can even approach an Indian bank having account in the country you are located and seek their assistance to open an account in India
2. Also you can open it online
3. Also you can opt to have global accounts – ticket size is bigger but so are benefits.

1. of deduction is relevant if you have other income liable to taxation.
2. Option for you are Pension plans of MF, PPF account (only if you already have one)
3. Other options but without tax exemptions are NPS, debt schemes of MF, FMP of MF, NCDs, FDs
4. In my view the best would be equity MF & direct equities so you can build sufficient wealth.

1. Yes you may convert USD to INR

2. In addition you may consider NCDs, Corporate Deposits, FMP from MF, short term debt MF that command a high rate in the current scenario