Investment in USA by an Resident Indian

Others 812 views 2 replies

sambhav

student

73 Points Joined November 2008

Please Clarify the following Doubts ,

1.Can an Indian Invest In EQUITY of an existing corporation in USA (i.e., an "Inc" [ in the state of california] ) without routing the Funds through US Stock Markets.

2. If yes,what are the Rules and Procedures ?

3. Is there any Limit on the amount of Investment ?

4. Any Rules and Regulations of India applicable to the above case ?

Replies (2)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

if the equity is listed in indian market, then yes,

indian rules will apply

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

7024 Points Joined May 2007

Originally posted by : sambhav

Please Clarify the following Doubts ,

1.Can an Indian Invest In EQUITY of an existing corporation in USA (i.e., an "Inc" [ in the state of california] ) without routing the Funds through US Stock Markets.

Yes provided that corporation is an existing one.

2. If yes,what are the Rules and Procedures ?

The same is permitted under LRS under which you can send 2 Lakh $ yearly.

3. Is there any Limit on the amount of Investment ?

$ 2 lakh yearly.

4. Any Rules and Regulations of India applicable to the above case ?

Income Tax Act, shall provide that income aising from such investments shall be taxable in India.

Anuj

+91-9810106211

femaquery @ gmail.com