Oci investments

Hi,

I have a client who is an OCI, holding UK Passport and UK citizenship. She has been residing in India for the past 2 years. She is presently working as a consultant and earns Rs 15 Lakhs per annum.

 

She wants to make some investments in Mutual funds. What would be status under which she should make the investments (Under resident Indian or NRI?)Does the criteria of 182 days stay in India apply to foreign citizens as well? She maintains both NRE/NRO accounts and Resident Indian Bank accounts? Is it not wrong to maintain both NRE/NRO as well resident Indian bank accounts.Does she need to change the bank accounts from NRO/NRE to Resident accounts and if yes, within what time period?  From which account should she make the investments?

She will stay in India for a period of 4 years after which she will permanently go back to UK.

 

Kindly help to answer the queries.

 

Thanks,

 

Karthik

Replies (1)

hi, my friend

your friend defenately make investment in india.

for this you have to maintain 3 accounts( as u told NRE/NRO/ NORMAL INDIAN BANK ACCOUTS)

but it is advisable to make investment from normal indian bank account because at the time of maturity it may be simple for credit in bank.

she have to transfer currency from NRO/NRE A/c to NORMAL BANK A/C. and NORMAL BANK A/C to investment. at time of maturity vice versa.

If you do not follow this procedure then double tax will be applicable because in NRO A/C bank will deduct TDS U/S 195 for capital gain interest @ 15%

While interest received from NRE A/C will be exempt from tax for her.

i hope u understand it.

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