Nri investing in india...?

Question

for an nri living in US, and if he invests in india, will he still under any income tax raid or review...

Answer 1

Best Answer - Chosen by Voters

I would like to handle this question in two parts. Part one can an NRI invest in India and part two what are the tax implications.

For the first part: In general NRIs are allowed to invest in India. however, if an NRI has become a citizen of the US, he is governed by the SEC (Securities Exchange Commission) regulations which needs to be followed while investing including investing in India.

Investment in India can be done either directly for products like mutual fund or through PIS (portfolio Investment Scheme) through various banks which offer this services. A PIS account is compulssory for investing in the equity markets.

With respect to Part 2, the revenues earned out of the investments in India are liable for tax. However, India has entered in to a DTAA (Double Taxation Avoidance Agreement) with some countries where there are special rates available.

With respect to the tax raid / review etc. if there is a doubt that the source of funds are questionable, then this can happen. In fact, it is the responsibility of the Bank / Broker / Fund House etc. through whom you invest these monies to report to the concerned authorities if they believe that the source of the funds are questionable. Further, suo moto, if there is any reason to doubt the genuineness of the source of funds there can be involvement from IT or other departments to find the same. If the sources of funds are clean, there should not be any concern in this regard. Even if there are any such raids, you will have necessary record of the source of funds.

Happy investing. Welcome back to your roots and join your hands for being part of the India story and benefit from that.

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Fundu Vishy - Your 'Mutual' Friend
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Answer 2

It depends where you invest and what is source of fund means if you bring your money Thur bank then you do not have to worry but if you bring your money thru other sources where you cannot tell the bank about the source of your money then you have to worry plus all depands the nature of your investment,if you invest as a nri then u are mostly safe but if you invest as indian then you will have problem.

Answer 3

If you have legally acquired funds, why should you be worried about raids. Intelligent investment in India, can not only be very rewarding but also secure for people of Indian Origin.

Answer 4

No,invest in a bindaas manner.