Question about market investment
Dosto mera dost is migrating to a foreign country. He is investing in mutual funds and share markets from past 2 years. Now what is better option for him to sale off all his holdings or continue his sip’s or stop the sip’s and hold his holdings till he is a citizen. which is better option and why?what will be tax implication once he leave India?
@bikidas2060 @Maverickz @Bk100 @Sudarshan61 @panchabhut
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he is investing thru groww. once migrated should one invest in Indian market or local market of that country?Is taxation in favor of nri’s?
Is he moving permanently or for few years?
Most likely he will need to sell of his all MFs
Last When I contacted ICICI Direct they cant convert Normal Demat to NRI Demat so they asked to to close existing account and open new NRI Demat account
Better ask him to contact Grow
NRI are not taxed in India (Only income earned in India will be taxed. Considering he is buying this for long term should not worry much about tax)
Is he moving permanently or for few years?
permanently
Most likely he will need to sell of his all MFs
Last When I contacted ICICI Direct they cant convert Normal Demat to NRI Demat so they asked to to close existing account and open new NRI Demat account
Better ask him to contact Grow
groww does not hold mutual funds in demat form. only zerodha hold stocks in demat form. biki sir can clear zerodha nri part @bikidas2060
NRI are not taxed in India (Only income earned in India will be taxed. Considering he is buying this for long term should not worry much about tax)
so, should he stop sip and hold all his holdings as such then.
Which foreign country is he moving to? Pakistan/Bangladesh is a “foreign country” too.
thanku sirg.
No negative taxation point once he leaves this country with his current portfolio? – Not till 6 months before he is branded NRI so it’s better he gets his account and investments transferred to or linked to and NRO/NRE account while he is sill in India.>>What happens after 6 months if he continues with his investments after converting account to nro/nre?
suppose one person invest in international stock then they are also not counted?
On a side note – He has to file his income tax for the year he shifts abroad and also year after year as long as he continues holding the investments in India as also in case he wants to claim back anything which comes under double taxation as per the taxation treaty between India and NZ/Canada.>> to stop headache of itr one person need to redeem all fd,mutual funds and shift to his international bank account? any new provision for itr for nri people?
And he got to verify the IT returns so better he leaves his IT and bank account linked mobile number with someone, recharges it for an year and puts it in a regular non-smart phone along with atleast a dozen or score of aadhaar and PAN card copies self attested. Coz he won’t get that stupid OTP on his phone even if he uses International Roaming and you can’t verify the returns without OTP. It’s a big ass issue. Like, huge!>> are you sure that messages won’t come on phone because calls do.
Just out of curiosity – Why is he asking these questions through you? I am sure he must have had these things figured out or taken care of before going.>> he is from rural area with one immigration consultant in his village. they are not clearing his doubt. i told him to visit chandigarh but he has lack of time due to job.
>> What happens after 6 months if he continues with his investments after converting account to nro/nre? – He becomes NRI, Status changed. He can no longer continue his old regular saving accounts and investments like PPF etc which are Govt. backed and only available to Citizens of india
suppose one person invest in international stock then they are also not counted? – If you are investing in international stocks from an entity based in india which is linked to your indian savings account, it’s the same.
>> to stop headache of itr one person need to redeem all fd,mutual funds and shift to his international bank account? – He would still need to file income tax returns for the Financial year when he left india & settled abroad
any new provision for itr for nri people? – That only an Income tax lawyer/CA would know>> are you sure that messages won’t come on phone because calls do. – Yup, calls do. OTPs are delayed. Their expiry is 1-3 minute. Good luck trying to get that right.
>> he is from rural area with one immigration consultant in his village. they are not clearing his doubt. i told him to visit chandigarh but he has lack of time due to job. – Ok
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Nri can invest in mfs. Contact branch. They will help out with migration of individuals status.