But for money to be parked for short term or long-term investments, an NRI needs to have any one of three types of banks accounts.
| Basis | NRE Account | NRO Account | FCNR Account |
|---|---|---|---|
| Currency | Indian Rupee | Indian Rupee | Foreign Currencies |
| Primary Purpose | Foreign earned income can be deposited here | For Indian earned income | Foreign earned income can be deposited here |
| Types of Accounts | Savings A/c & Fixed Deposit A/c | Savings A/c & Fixed Deposit A/c | Fixed Deposit A/c Only |
| Repatriation | Fully repatriable | Interest earned is fully repatriable. The capital balance can be repatriated up to USD 1 million per fiscal year. Foreign income can be deposited but not repatriated. | Fully repatriable |
| Taxation | The entire balance & interest earned is exempt from tax | Interest portion is taxable as per the income tax slab | The entire balance & interest earned is exempt from tax |
| Foreign Exchange Risk | Present | Not Present | Not Present |
| Joint Account | Can be opened with another NRI only | Can be opened with another NRI or resident Indian | Can be opened with another NRI only |
| Type of Investment | Can NRIs Invest |
|---|---|
| Bank Fixed Deposits | Yes |
| Mutual Funds | Yes |
| Direct Equity | Yes |
| Real Estate | Yes |
| Sovereign Gold Bonds | No |
| Government Securities | Yes |
| National Pension System (NPS) | Yes |
| Public Provident Fund (PPF) | No |
| Post Office Schemes | No |
| PMS (Portfolio Management Services) | Yes |
| Tax Deducted at Source | |
|---|---|
| Equity Schemes | |
| Short Term Capital Gains | 15% |
| Long Term Capital Gains | 10% |
| Other than Equity Schemes | |
| Short Term Capital Gains | 30% |
| Long Term Capital Gains |
Listed – 20% with indexation Unlisted – 10% without indexation |
| Capital Gains | |
|---|---|
| Equity Schemes | |
| Short Term Capital Gains | 15% |
| Long Term Capital Gains | 10% |
| Other than Equity Schemes | |
| Short Term Capital Gains | As Per Investors’ Tax Slab |
| Long Term Capital Gains |
Listed – 20% with indexation Unlisted – 10% without indexation |
| Dividends | |
|---|---|
| Income Tax | As per investors’ Tax Slab |
| Withholding Tax | 20% |
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+91-9810423511
support@onestacapital.in
