I am a NRI living in US. Can I invest in Indian stock market (Stock or mutual fund) using my NRI bank account?
Question:
Answer:
ocherian's answer that the income from investing abroad is taxable in the US only when the gains are repatriated is incorrect. IRS would consider this sort of tax return as tax evasion and the tax return would attract severe penalties.
Legally, there are limitations as to how you could trade Indian equities living in the US. Most of the big brokerage houses in India have stated that US investors are out of bounds. This is probably because of some SEC regulation.
Even as a US resident one can invest directly through a mutual fund in India. Ofcourse, the income derived out of the mutual funds is taxable in the US.
You can invest in the Indian Stock money, but any income you make has to be reported in the US and taxes due - you can take the credit on your India taxes.
Answer is Yes to all your questions. You can even use money in NRO account to invest in Indian stocks and bonds. As long as you keep all transactions and accounts in India you do not have to pay any taxes in USA. If you use money in a bank in USA to do transactions in India and bring back profits in USA you have to report it in your tax return in USA. If you bring in money from outside and earn interest on it in USA you have pay tax on the interest income.
with NRO account and in mutual fund under "growth scheme" you need not pay taxes in India if you invest under Rs 50 000 each time
simply yes you can do it.
Yes you can invest in India stock market through Mutual funds ,only requirement is you need to have a NRO account are NRE account ,and you will taxed in India ,but once you take back your profits to US you need to file a return.
Yes. You may. But you must have a demat account.
Sure you can do that. Many private sector bank are offering this service .banks like Citibank, YES BANK, Kotak Bank etc.
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