US based NRI's - How do you guys invest in equity now?


(sushildarveshi) #83

I am using Zerodha as broker and Yes Bank for NRE & NRE-PIS account. First transaction took little time but once set, next transactions were smooth. I can give you the contact details of people who helped me to set brokerage account in Zerodha & NRE, NRE-PIS account in YES Bank. Let me know. Transaction cost

  1. For Zerodha - 0.1% on transaction value
  2. For Yes Bank - Flat Rs.100 for every buy / sell transaction

Process for transaction is

  1. first you transfer money to NRE account.
  2. From NRE account, funds are transferred to NRE - PIS account (immediate transfer)
  3. Funds in NRE-PIS account get reflected in Zerodha account after 1 day

Hope this helps.

Sushil


(bomi karkaria) #84

A family member who is a permanent resident of Canada tried to open a NRE PIS account with ICICI in Canada but they declined stating this service was not offered there. Has anyone else experienced the same?


(mechos) #85

Sushil, can you PM me the contact details of folks that help you setup YES Bank account please? I already have a Zerodha account


(sushildarveshi) #86

Dont expect quality, but work would be done.
Asmat - +91-9324259563
Works in Chembur, Mumbai branch of Yes Bank.


(Pranab R Mishra) #87

For NRI Trading account, it’s better to go with Bank with Broker rather than NBFC. The transaction will be smooth.

You will get Bank, PINS, Trading and Demat Account in a single roof.


(rupaniamit) #88

My understanding is that an NRI’s holding period in Indian equities has to be 3+ years, for it to be considered as long-term for USA taxes. In other words, if my holding period is 366 days, it will be treated as “long-term” in India but would still be “short-term” for USA tax purposes.

Anyone please correct me if I am wrong. Thanks.


(RamanTiwari) #89

so complicated, can’t you just buy shares in family name… what does person gets after paying taxes at multiple points…
India does allow remittances out from parents to kids


#90

in the US,

if sold within 1 year, you get taxed at your usual Tax Bracket.
If sold after 1 year, Preferential Long Term Cap Gains tax rate of 15% (filing single: income 39k to 426k, or filing jointly: income 77k to 479k).


(rupaniamit) #91

Thank you @rajdori. Can you please share link to above referred statement that confirms that cut-off between short-term and long-term is 1 year (or 365 days) for NRI investments in Indian equities for US tax purposes?


(timedimpulse) #92

That may be covered under Benami Transactions :slight_smile:


#93

You may find this info at Primary source (IRS site) as well, but here’s one secondary source - https://www.fool.com/taxes/2017/12/11/long-term-capital-gains-tax-rates-in-2018.aspx


(sushildarveshi) #94

with implementation of LTCG in India, do we have to pay LTCG tax in India as well as in US ?


(rupaniamit) #95

Hi @sushildarveshi - I’m still trying to figure out the details. My understanding is that because of double taxation avoidance treaty between India & US, if LTCG is paid in India, US resident will get credit with IRS. Again, I’m not an expert and do your own due diligence. Thanks.


#96

check rules for “Tax Home”. if your tax home is US, you need to show your worldwide income in US / IRS return, and pay taxes. This means, pay LTCG in US return.

Calculate Indian tax return normally, but claim credit of taxes paid in the US - attach proofs of 1040, and tax payment.

Again, I may be wrong, do your homework.


(rupaniamit) #97

@rajdori - money is made in India (in Indian equities). It would seem logical that NRI pays LTCG or STCG tax in India (source) and then file credit in the US with IRS. But will keep digging as to how it works. Thank you!


(kkvar) #98

I am trying to open NRI account from USA:
ICICI says I have to be physically present in India for opening NRI trading account and I need to have PIS/NRE with them.
HDFC securities says they do not offer trading account for NRIs from USA
Sharekhan says they only can offer trading account if we have NRE/NRO/PIS with either ICICI/Axis/IndusInd. I have a PIS with Yes Bank and they said they cannot accommodate Yes Bank
Waiting to hear from Kotak. However, their fees look very high compared to others.
Can’t open account with Zerodha/others due to some restrictions.


(makreddy) #99

Please check with Zen Securities


(girishrbhat) #100

ICICI is one of the worst broker in terms of brokerage fees. I am moving to zerodha


(Mohammed Rehan) #101

Try Indiainfoline

Best would be to have 3 or 4 in 1 account with a bank.

What happened to the non requirement of PIS account ?


#102

I am with Kotak for five years now, both NRE PIS, and NRO PIS. Excellent experience. Due to high brokerage, moved to Zerodha + Yes Bank. Took one year (yes !!) due to Yes Bank side of issues. Zerodha folks were great. Now that it is setup, it is working smoothly.
Bottomline…if brokerage cost is imp for you, go Yes Bank + Zerodha way.
I’m not sure why would Zerodha talk of any restrictions. So, check again.
Also, be aware that now, for US-based NRIs, only NRE will be PIS. NRO Account is allowed to be non-PIS.
One advise - do everything first time right. Take scans of anything you send to India, review page by page with them. Only after everything looks 100% right, mail it to India.
Best Luck !!