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
For Zerodha - 0.1% on transaction value
For Yes Bank - Flat Rs.100 for every buy / sell transaction
Process for transaction is
first you transfer money to NRE account.
From NRE account, funds are transferred to NRE - PIS account (immediate transfer)
Funds in NRE-PIS account get reflected in Zerodha account after 1 day
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?
My understanding is that an NRIās 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 ālong-termā in India but would still be āshort-termā for USA tax purposes.
so complicated, canāt you just buy shares in family nameā¦ what does person gets after paying taxes at multiple pointsā¦
India does allow remittances out from parents to kids
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).
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?
Hi @sushildarveshi - Iām 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, Iām not an expert and do your own due diligence. Thanks.
check rules for āTax Homeā. 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.
@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!
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.
Canāt open account with Zerodha/others due to some restrictions.
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.
Bottomlineā¦if brokerage cost is imp for you, go Yes Bank + Zerodha way.
Iām 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 !!
