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

(RamanTiwari) #103

Check with Axis bank too, I am a non USA NRI… recently a friend opened accout with Axis… they verified him thru a skype video call (hence no need to be present in India)


to add, everything I shared above, can be done from US.

(sushildarveshi) #105

I sold one stock with holding period less than 1 year. Yes Bank charged me 18% as TDS. Even short term tax is 15%. And my tax country is US, not India. Has anybody else faced this issue before ? and is it legal to deduct TDS and that too at 18%

(s) #106

You have to submit DTAA certificate to avoid taxes. Also you can claim credit while filing taxes in US. Please check with your CA/CPA

(MHS) #107

(sushildarveshi) #108

google search landed me on below page

(rupaniamit) #109

Hi All,

Need help guidance from senior members who have investing in Indian equities from USA through PIS route.

I wanted to understand if I would owe taxes on any unrealized gain for a given tax year. Below please find an example:

a) I buy stock A worth Rs. 10 lakhs on 01/01/2017
b) Investment value in stock A grows to Rs. 40 lakhs on 12/31/2017 and still remain invested (Rs. 30 lakhs unrealized profit).

Do I owe taxes on Rs. 30 lakhs unrealized profit for the year?

If I go by what has been mentioned in below article and assume that “Option 1: Election to mark-to-market PFIC” will to be applied on direct equities as well, then I would owe taxes on Rs. 30 lakhs of unrealized gain in my above example.

Any guidance/suggestion from senior members who have been filing/reporting taxes to IRS for their Indian direct equity investments will be much appreciated.


(s) #110

As per my understanding

The article you have attached is for Mutual fund holding and the same goes for Fixed deposit and PPF account. However PIS route is for direct investment into equity and that will be treated as equity profit and loss (ie it has to be added as P/L every year) however you may have to fill FATCA form for current holding with IRS every year. However you may want to confirm the same with a CPA.

(muralimohan001) #111

The question is for US based NRIs related to LTCG tax:

Does US based NRIs need to pay LTCG tax in India for gains on NRE demat Account? Is it fine to pay taxes only in US as US tax resident.

If at all paying taxes in India, how are you handling as tax years different (in US Jan-Dec, in India April-March)

(Amit K) #112

[Slightly Offtopic]

Cross posting for the meetup in Bay-Area/SanFrancisco as several posters here are likely in USA: Meet up in San Francisco / Bay Area

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