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

Can you please provide the RBI circular reference for the 5% surcharge you have mentioned.

I am not sure if you have first hand experience with PIS, but here I will outline a few based on my first hand experience with HDFC PIS (NRO) and FundsIndia.

  1. The cost per transaction is rougly 400-500 Rs. There is ledger update charges + transaction charge + GST. The only way to reduce is if I do multiple transactions in one day, which is not something that I can do, since my desired stock sale price may not reach as per my wish. :slight_smile:
  2. You are hinting at re-partriation in your point (‘transfer money back’.) Please remember that you need an NRE PIS account for that. If you are like me and have an existing portfolio (while you were still resident,) then you would have by now converted to NR demat account (linked to NRO PIS account). So, repartriation is not an option anyway for that money. You will have to pay TCS of 5% (maybe on amount exceeding 7.5 lac if I recall correctly) if you wish to do an outward remmittance via your bank.
    The point is, if you want repartiation, then you need NRE PIS account (which means additional annual charges about 1000 INR) + your existing NRO PIS account (again 1000 Rs. per year.)

Please check with your bank
You can repatriate
As you said there is a 5% surcharge
You need your ca letter that tax has been paid
If your bank doesn’t do it change to ICICI

Secondly the difference between resident demat and pis demat is the reporting charge of rs 120 per transaction

I get a brokerage rate of 0.010% and all other costs are same as regular demat

Other than that I have a wait period of 2 days after I sell as my account is cash only, nri are not allowed f&o segment

I think rs 120 reporting charge is not much unless you’re buying every day

Reporting charge is per day not per script on the days I buy or sell

I was waiting for this option since long as I did not want to go via PIS due to exuberant charges.
This option does seem viable , I am just waiting to get my documents attested which is quite a pain at this point of time.

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I feel for nro account we don’t need pis account. If nro account is linked to demat…it is at par as resident indian account…money earned on nro linked demat account should be taxable as indian law…if we want bring indian nro money to dollars…it will require same process as would be done for any other money…like parents send mone to usa as their kid is doing masters in usa…please correct me if my assumption is wrong

All your assumptions are correct

On taxes, it doesn’t matter nre or nro, both are taxable in the same manner and with total “Indian income” if you are non resident

and world income if you are tax resident (1st year of your overseas income if it happens when you are deemed tax resident is taxable in India)
It’s never enforced but in principle it’s taxable if you had stayed in India for more than 182 days

Thanks…it seems if my tax contry is usa …all indian income will be taxed in usa. Could be rental income or equity income. TDS gets deducted in nro but not on nre…not sure why they deduct TDS on nro. Interest paid on indian housing loan.if we can not claim in India and usa does not give rebate on housing loan interest kind off …not sure how this will be treated…any one talked to their ca of india and ca of usa both

I know a bit about U.K. tax and managed a branch in USA with help of tax accountants, the rules are not very different

To remit back nro money you need your ca certificate saying tax on that money is paid, to remit back nre money, no such certificate is required. The government hence is right to deduct tax, they refund it back to you if excess was collected

Any tax you pay in India, you get to deduct from your USA taxes on that part of income.

That’s when you have a gain on Indian shares

However, If you had a capital loss in India and a capital gains in USA, you get to deduct the capital loss in india from the gains in USA and only pay taxes on net gains

You also get to carry forward your losses in both jurisdictions

If you had a gains in both jurisdictions, you have to pay indian tax on Indian income, you have to show india income in your USA tax return, then calculate tax, you have to deduct from the Indian portion capital tax lower of USA capital tax on Indian capital gain or the actual Indian capital tax

I am not sure if you are using the word ‘repatriate’ in the correct sense here. If you are bringing in money earned overseas into India and then taking it back, then the word ‘repatriation’ is more appropriate. In that case, it is the NRE account (and PIS is mandatory there) which comes into play.
However, here we are talking about NRO account, where you typically have source of income from India.

Like I have mentioned that besides the ‘processing’ charges (Rs. 100 if below 50000 INR transaction), there is also a ledger update charge every day you do some transaction.

In the last two months alone, I have shelled out Rs. 3000 + towards charges and GST. :slight_smile:

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I have NRE PIS account with Zerodha. For each scrip sale…they are charging Rs 15.93.

Is this correct? Why for each scrip sale they are charging Rs 15.93…No Response from them till now after asking question.

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That’s a very good price
Which bank do you use for your trade account?
How much do they charge you for each transaction?

It cant be so cheap…also, i think PIS system is abolished.

Basically bank charges their price for pis on top of it Zerodha changes for brokerage in addition to both of these they are charging 15.93 per scrip sale…let say 10 different shares I sold on same day… 10*15.93 they are charging as DP charges…

Which bank did you open pis with for zerodha.?

DP (Depository participant) charges

₹13.5 + GST per scrip (irrespective of quantity), on the day, is debited from the trading account when stocks are sold. This is charged by the depository (CDSL) and depository participant (Zerodha).

As per Zerodha… so Zerodha charging this along with cdsl

Hi,
Any body from USA tried for “open an NRO non-PIS demat account”? I am reading for Zerodha, it has given process about to open an demat account. They say they charge 100rs per trade. Does it mean i buy 5 companies stock in same day, they will charge me 500/rs? Anybody dealt for taxation in USA for this type of Demat account. Any idea will help me a lot.

For this demat, can we approach to ProStock or Reliance money etc? Which is the best one
NOTE: I have NRO account

I had the same problem. I’m holding an account with Zerodha and currently staying Singapore. Zerodha said documents attestation is a must for conversion, but they can accept any local bank’s attestation of documents in Singapore and need not necessarily be from a Public Notary or Indian Embassy. Unfortunately, no bank in Singapore does that, including Indian local banks in Singapore like SBI, ICICI etc. When enquired, got to know they can only attest documents for their own bank related activities in India and not for any other accounts.

Only viable option was a Public Notary for me and shell out a bomb for it. It cost almost 15000 INR for a simple attestation of my document proofs in Singapore from a Public Notary!

Yeah, I am in the same boat and honestly the notary charges are exorbitant in UK as well, it would cost me around 20K to do this from a notary and honestly I don’t want to do it , I just feel it’s too much. I am not sure if the Indian banks would do it here or not but I guess the rules should be same. I wish there was a better way to get the CKYC updated from somewhere.

EdwardLobo-Sir, how do you manage to get 0.010% at ICICI Securities? Is that what you are implying above? Are you a very active trader (may not be intraday) but may be a swing trader. I have gotten it down to 0.20% for now and I thought that was a major achievement.

I do not even know about the Rs120 per transaction since it does not show anywhere in the confirmations, and I am about 20 transactions per week (average).

Thanks.

I am not good at the NRO PINS and Non-PINS but I have both accounts.

My original funds in India are treated as NRO. When I sell something there, it can never be repurchased in that account.

If I want to buy something new it is in the other account (non-PINS, I presume) and for that, I have to transfer the cash from the selling in NRO to this other account (both at same brokerage) and then trade / invest. Once it is in this account, I can buy and sell anything / everything as often as I want. Also, ANY money to be brought to the US comes out of this 2nd account, where I have to get a Clearance Certificate with 15CA/CB form and then it takes 2-3 days to transfer the money to USD and into US Bank Account.

Hope this helps.