Investment guidance for NRI
This query is : Resolved
19 August 2025
I am a NRI. Kindly guide, 1)for investing in India (stock, MF and others assets), which bank account I should use-NRE or NRO? what would be the tax implications in each case?
2) Can I use India based brokers (such as Zerodha etc.) to invest in foreign bonds/stocks/currency by using my Foreign bank account, or I need to use a foreign broker and foreign bank account for this purpose? What would be my Tax liability in India for such investments outside India?
2) Can I use India based brokers (such as Zerodha etc.) to invest in foreign bonds/stocks/currency by using my Foreign bank account, or I need to use a foreign broker and foreign bank account for this purpose? What would be my Tax liability in India for such investments outside India?
19 August 2025
1. https://primewealth.co.in/nri-tax-guide-nre-transfers-mutual-funds-and-property-sales/
2. https://zerodha.com/varsity/chapter/foreign-stocks-and-taxation/
3. https://www.kotakmf.com/Information/blogs/nri-investment-in-mutual-funds_
2. https://zerodha.com/varsity/chapter/foreign-stocks-and-taxation/
3. https://www.kotakmf.com/Information/blogs/nri-investment-in-mutual-funds_
19 August 2025
For investments within India (stocks, MFs, etc.), use NRE account for tax-free interest and full repatriation; use NRO for managing India-sourced funds but with tax on interest.
For investments outside India (foreign stocks/bonds), you need a foreign broker and a foreign bank account; such income is not taxed in India as long as you are an NRI.
Utilise DTAA to avoid double taxation on India-based investments.
If you need to optimize your setup or have complex sources of income, consult a cross-border tax professional to ensure compliance with RBI and tax laws in both India and your country of residence.
For investments outside India (foreign stocks/bonds), you need a foreign broker and a foreign bank account; such income is not taxed in India as long as you are an NRI.
Utilise DTAA to avoid double taxation on India-based investments.
If you need to optimize your setup or have complex sources of income, consult a cross-border tax professional to ensure compliance with RBI and tax laws in both India and your country of residence.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- LTCG EXEMPTION AND TAX APPLICABILITY
- ITR 3 VALIDATION
- EPF withdrawal before 5 years and Disclosure in ITR-2
- Brokage income from sale and purchase of property
- UNUTILISED CAPITAL GAIN FD
- Error while validating
- ITR-4- U/s.44AD- Financial Particulars of Business
- Clarification on ITR 3: Is Sl. No. 64 required for 44ADA income?
- 44AD business and F&O loss
- Regarding Withdrawal of unused amount in Capital Gain account scheme
- Accounting entry for instalment payments and gst obigations
- Purchase of Time Deposit in AIS
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Stamp Duty & Registration Fees on Sale Deed
- GST on Restaurant service
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
- Filing GST Returns after death of proprietor
- Registered Required in GST Act
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
