Can OCI holders open PPF account in India
Question: Can OCI holders open PPF account in India?
Raju Kanumuri: OCI holders who are living in India are considered to be residents in India. Their status is no longer that of a Non-Resident (NRI). Therefore they can open PPF account in India.
While we are on the subject of bank accounts, technically such OCIs cannot continue to hold NRO or NRE accounts. This is because residents cannot have Non-Resident bank accounts. In such cases they are expected to re-designate their NRO accounts to Resident bank account. They can:
1.Open a resident account and move the balances of their NRO account into this account.
2. Open a RFC account (Resident Foreign Currency) and transfer the balances in their NRE account into this account.
Q: Does an NRI, FII require any approval from the RBI to invest in mutual funds?
A: No special approvals are required. NRIs/FIIs have been granted general permission by RBI for investing in/redeeming units of funds subject to conditions set out in the aforesaid regulations.
Q: What is the tax liability on redemptions?
A: Under Section 2(42A) of the Income Tax Act, units of the fund held as a capital asset for a period of more than 12 months immediately preceding the date of transfer, will be treated as a long-term...
Q: What is the tax liability for income received from mutual funds?
A: As per Section 10(35) of the Income Tax Act, 1961, income received from mutual fund units specified under Section 10(23D) is exempt from income tax in India and the mutual funds are subject to pay...
Q: Can an NRI have a joint account in mutual funds with a resident Indian?
A: Yes. An NRI investor can jointly own a fund account with a resident Indian or an NRI.
Q: What are the step by step instructions to replace lost OCI card?
A: Before a lost OCI card can be replaced,
Applicants should file a police report. To apply for a replacement OCI Card, applicants will have to provide a copy of the complaint filed with the police....
Q: Can i repatriate funds in the NRI account?
A: The principal as well as the interest of the funds in an NRI account can be repatriated only if a person holds either an NRE account or an FCNR account. In case of an NRO account, only interest...
Q: Are there any prohibitions on the purpose for which loans cannot be taken?
A: The loans cannot be utilized for the purpose of re-lending or for carrying on agriculture or plantation activities or for investment in real estate business.
Q: Can NRI transfer money out of India?
A: Interest earned and balances held in NRE and FCNR accounts are not taxed and can be freely repatriated abroad. RBI allows NRIs to transfer money from NRO to NRE account, subject to the overall...