NRI Investment — Common Questions

Yes. NRIs can invest in most Indian mutual funds via an NRE or NRO bank account. Some US/Canada-resident NRIs face restrictions due to FATCA/FBAR rules — check with individual fund houses. We help you identify which funds accept US/Canada residents.

NRE (Non-Resident External) accounts hold foreign earnings repatriated to India — fully repatriable and interest is tax-free. NRO (Non-Resident Ordinary) accounts hold Indian-source income (rent, dividends) — repatriation limit is USD 1 million per year, and interest is taxable in India. Mutual fund investments can be linked to either.

Yes. Equity fund LTCG (held >1 year) above ₹1.25 lakh: 12.5%. STCG (<1 year): 20%. Debt funds: taxed at slab rate. TDS is deducted at source by the fund house; NRIs can claim a DTAA benefit to reduce or eliminate Indian tax if their country has a treaty with India.

Double Tax Avoidance Agreement (DTAA) is a treaty between India and 90+ countries. It ensures the same income is not taxed twice. An NRI can claim the lower of Indian tax rate or treaty rate, and get credit for Indian TDS against their home-country tax liability.

Foreign earnings can come through inward remittance (SWIFT) into an NRE account, or via NEFT/IMPS for existing NRO accounts. FEMA allows unlimited inward remittance. Outward repatriation is subject to the RBI's Liberalised Remittance Scheme limits for NRO accounts.

Yes. NRIs aged 18-70 can open an NPS Tier I account. Contributions are eligible for Section 80CCD(1B) deduction of ₹50,000 under the old tax regime, same as residents. Tax treatment on withdrawal and annuity income may vary by DTAA treaty.

Foreign passport / PAN card, OCI/PIO card (if applicable), NRE or NRO bank account proof, FATCA/CRS declaration, KYC (done digitally for most fund houses — video KYC or eKYC via Aadhar for PIOs), cancelled cheque of NRE/NRO account, and address proof abroad.