Yes, funds from an NRE account can be transferred to self NRO account without any restrictions.

NRIs are allowed to invest in direct investments in the shares and debentures of Indian companies, as well as units of mutual funds. They are also allowed to conduct portfolio investments, which involve purchasing shares and debentures of Indian companies through stock exchanges. These investment opportunities are available for both repatriation and non-repatriation purposes.

Capital gains from equity investments are taxed differently based on the duration of holding. Long-term capital gains (LTCG) on sale of equity shares (listed) or equity-oriented mutual fund units are taxable at the rate of 10% if the gain on sale is more than Rs. 1 lakh. There is no indexation benefit allowed on the cost of acquisition for LTCG.

In case the LTCG is less than Rs. 1 lakh, then it is exempt from tax, provided Securities Transaction Tax (STT) was paid on acquisition and sale of equity shares.

Short-term capital gains (STCG) on sale of equity shares (listed) or equity-oriented mutual funds are taxed at a flat rate of 15%.

Dividend income from shares of an Indian company or Equity Oriented Mutual Funds are taxable in India for NRIs.

If a shareholder qualifies as a non-resident in India under the Indian Income-tax law, dividend income is taxable at 20% plus applicable surcharge and 4% health and education cess on gross basis.

Securities Transaction Tax (STT) is levied on every purchase and sale of securities that are listed on recognized stock exchanges in India.

STT is an amount to be paid over and above transaction value and hence, increases transaction value. The tax rate depends upon the type of instrument and the period for which the non-residents hold them before selling.

STT must be paid on acquisition and sale of equity shares. In the case of equity-oriented mutual funds, STT must be paid on the sale of units.

Yes, there is an indexation benefit available to NRI equity investors. However, this benefit is only applicable to long-term capital gains (LTCG) exceeding Rs 1 lakh per year. The LTCG tax rate for equity-oriented funds is 10% without the indexation benefit. The LTCG tax rate for equity-oriented funds is 20% with the indexation benefit when STT is not paid or for unlisted Equity Transaction.

Short-term capital gains (STCG) on sale of equity shares (listed) or equity-oriented mutual funds are taxed at a flat rate of 15% similar to resident Indian without any slab benefit available.

NRIs can claim deductions up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act for investments in Equity-Linked Savings Schemes (ELSS).

NRIs must report their income from equity investments to the Income Tax Department in India by filing their income tax returns online through the e-filing portal of the Income Tax Department.

Yes, NRIs can avail the benefit of the Double Taxation Avoidance Agreement (DTAA) to reduce tax liability on capital gains. If India has signed a DTAA with the country of residence of the NRI, then the NRI can take relief from double taxation. The NRI can opt for either DTAA rates or income tax rates of taxes whichever may be beneficial to the Assessee. As per the treaty, NRIs can pay tax at either of the countries or pay tax in both countries and claim tax relief in the country of their residence. The DTAA agreements cover a range of income such as income from employment, business profits, dividends, interest, royalties, capital gains, among others. The rates at which tax has to be deducted on income paid to residents of that country are fixed in DTAA signed by India with different countries. This means that when NRIs earn an income in India, the TDS applicable may be according to the rates set in the Double Tax Avoidance Agreement with that country.

Mutual Fund Dividends: For Non-Resident Indians (NRIs), dividend income from mutual funds is taxable at a flat rate of 20% plus applicable surcharge and 4% health and education cess on a gross basis.

Holding Period for Taxation of Mutual Fund Investments: The holding period for taxation of mutual fund investments is calculated from the date of purchase to the date of sale.

Systematic Investment Plans (SIPs): NRIs are eligible to invest in SIPs in India. However, SIPs are not tax-free for NRIs. Different types of mutual funds are taxed differently. For equity funds, short-term capital gains (STCG) will be applicable if gains are realized within a year of investment, and the gains will be taxed at a flat rate of 15%. For long-term capital gains (LTCG), exceeding Rs. 1 lakh per financial year, the gains will be taxed at 10% without indexation benefits .

Tax Rates for Debt and Equity Mutual Funds: For NRIs, capital gains tax on mutual funds is calculated based on the type of mutual fund. For equity-based mutual funds, the tax slab of TDS is at a rate of 15% under STCG and 10% under LTCG. For debt mutual funds, the tax slab of TDS is at a rate of 30% under STCG and 20% under LTCG .

Yes, NRIs can invest in Tax-Saving Fixed Deposit (FD) schemes in India. A tax-saving FD account is a type of fixed deposit account that offers a tax deduction under Section 80C of the Income Tax Act, 1961. Any investor can claim a deduction of a maximum of Rs.1.5 lakh per annum by investing in a tax-saving fixed deposit account.

However, it is important to note that interest earned on both domestic and NRO fixed deposits is taxable in India. Hence, NRIs who earn interest can also get a deduction up to Rs. 1,50,000 under Section 80C of the Income tax Act 1961.

NRIs can set off capital losses from mutual funds against capital gains to arrive at a lower gain, thereby reducing the taxable gains.

Debt Mutual Funds: For NRIs, debt mutual funds held for less than three years are considered short-term, and capital gains are added to the income of the NRI and taxed at 30%. For long-term investments, debt mutual funds are taxed at a rate of 20% with indexation benefits

Foreign Tax Credits for NRIs in Canada: NRIs may be eligible to claim foreign tax credits for foreign income or profit taxes paid on income received from outside Canada and reported on their Canadian tax return. However, eligibility for this credit may be affected by tax treaties with other countries. Foreign income and foreign taxes must be converted to Canadian dollars.

Important Tax Deadlines for NRIs in India and Canada: NRIs are required to file income tax returns in India if their taxable income exceeds the basic exemption limit. The last date for filing returns is July 31 of the relevant assessment year, but if you are a working partner in a firm whose accounts need to be audited, then the due date is September 30 . In Canada, NRIs are required to file a tax return if they have earned income in Canada or if they owe taxes to the Canadian government. The last date for filing returns is April 30 of the following year.

E-Filing Methods for NRIs in India: NRIs can file their income tax returns online using the Income Tax Department website or through authorized e-filing portals. The steps include obtaining a PAN card, registering on the Income Tax Department website, gathering necessary documents, calculating taxable income, choosing a tax filing portal, filling out the ITR form, and verifying and submitting the form. You may take help of Chartered Accountants who are expert in NRI tax Returns as you must avail benefits of DTAA with your country.

Income Tax Refunds for NRIs: If NRIs file Income Tax Returns (ITR) after the financial year has ended in India, they can claim refunds on the deducted TDS. For an NRI to claim a refund on the TDS deducted, they must self-compute their income and tax liability according to existing slab rates .

NRIs can repatriate the proceeds from the sale of equity shares and mutual funds held on a repatriable basis after paying applicable taxes. The net income or capital gains (post-tax) arising out of the investment can be repatriated. Even in the case of non-repatriable investments, the dividend arising out of such investment can be repatriated.

Once you become an NRI, you will need to open an NRO, NRE or FCNR-B account in India . While NRO accounts are meant for funds earned in India, NRE accounts hold your foreign income . When you move money from your NRO account into your NRE account or to an account in your country of residence, it is called repatriation. The repatriation process involves transferring funds from your Indian bank (NRO) account to an overseas bank account or NRE bank account held by an NRI . The Foreign Exchange Management Act 1999 and various RBI guidelines govern the repatriation of funds. You can transfer or repatriate funds from your NRE account freely without any limit. Your NRO account balance should hold legitimate dues receivable in India and not through borrowing from another person or funds transfer from another NRO account. Further Bank may insist for certain formalities on documents, declaration and forms like 15CA and Form 15CB, a certificate from a Chartered Accountant.

NRIs can remit up to USD 1 million in a financial year from their NRO account. Sale proceeds of assets acquired by inheritance, Equity shares or Mutual Fund sales, settlement deeds, etc., are also included in this amount . However, there are no limits on funds repatriable from an NRE account. Funds in the NRE accounts of NRIs (both principal amount and the interest earned on the deposit) are fully and freely repatriable outside India.

Yes, the repatriation of funds in the NRE Account can be done easily in foreign currency. Funds in the NRE accounts of NRIs (both principal amount and the interest earned on the deposit) are fully and freely repatriable outside India .

The principal as well as the interest earned on an NRE Deposit is completely and freely repatriable which means that you can transfer the funds in the NRE Account to your overseas accounts without any restrictions and taxes. However NRO FDs and NRO FD interest can also be repatriated subject to taxes paid on NRO FD interest and certain formalities on documents, declaration and forms like 15CA and Form 15CB, a certificate from a Chartered Accountant.

For Non-Resident External (NRE) accounts, the interest earned is tax-free in India. On the other hand, the interest earned in Non-Resident Ordinary (NRO) accounts and credit balances is subject to the respective income tax bracket. You can avail the reduced tax benefit under the Double Taxation Avoidance Agreement (DTAA) for your NRO Interest earned.

Regarding NRI investments in government securities and bonds, the gains made from sale of the bonds or the interest earned on it are taxable under the Income Tax Act, 1961 unless the bonds are specified as "tax-free". The interest is taxed as per the income tax slab of the NRI Investor under the category "Income from other sources". You may avail the reduced tax benefit under the Double Taxation Avoidance Agreement (DTAA) for your taxable Interest income earned.

For Exchange-Traded Funds (ETFs), the tax structure is similar to that of mutual funds. The income earned from ETFs is taxable in India. The tax rate for short-term capital gains is 15%, and for long-term capital gains, it is 10% above Rs 1 lac.

Regarding alternative investments like Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), the income distributed by these trusts in the form of debt repayments is taxable at the hands of unitholders. The interest, dividend, and rental income earned from these trusts are taxable at the slab rate applicable to the unitholder.

NRIs are not required to disclose their foreign assets and foreign account details in their tax returns.

Non-compliance with NRI tax regulations in India can lead to Interest, penalties and fines. In India, the penalty for non-compliance with tax regulations is from 100 % to 300 % of the tax due