Investment routes to savings. Like residents, non-residents too can choose the entity to invest in their hard-earned money. There are three channels through which they invest which are NRO, NRE and FCNR accounts.
Secondary market can be their preference to deposit their money in equity shares and convertible debentures. Besides, there is a 24% and 40% scheme under which the NRIs investment is allowed into shares, preference shares, equity, real estate and convertible debenture. Only non-agro land investment is approved by the government to invest upto 24% in it while convertible debenture investment can exceed upto 51%. Non-convertible debentures can also be their preference for investment. But only 11% to 12% return can harvested as fixed income with marginal tax payment. Mutual fund investment can be their cup of tea which would be fully repatriable. On the contrary, domestic fund investment is allowed to them but it is non-repatriable if they deposit in non-banking finance company (NBFC). Government bonds can also be bought by them. The money can be channelized through NRE/NRO/FCNR account. But the cap of $ 1 million is applicable in this case. Apart from these, spending money to purchase any non-agricultural property is allowed to them.
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