Wish to make INFORMED INVESTMENTS for Long Term WEALTH CREATION
Expert Portfolio Management
Access to professional fund managers with proven track records in generating consistent returns across market cycles.
Diversified Investment Options
Choose from a wide range of investment strategies tailored to your risk profile and financial goals.
Transparent Reporting
Regular updates and comprehensive reports on your investment performance with clear insights into portfolio strategy.
Make An Informed Decision
Documents Required for NRI Investments
PAN Card
Permanent Account Number (PAN) is mandatory for all financial transactions in India, including investments by NRIs.
Passport
Valid passport serves as proof of identity and citizenship status for NRIs investing in India.
Bank Account
NRE/NRO/FCNR bank accounts are required for investment transactions and repatriation of funds.
OCI Card
Overseas Citizen of India card provides additional benefits for former Indian citizens and their descendants.
Why should NRIs Invest In India
Strong Economic Growth
India is one of the fastest-growing major economies in the world, with a projected GDP growth rate of 6-7% annually, offering significant investment opportunities across various sectors.
Favorable Demographics
With over 65% of the population under the age of 35, India has a large, young workforce driving consumption and economic growth, creating long-term investment potential.
Currency Advantage
NRIs can benefit from the depreciation of the Indian Rupee against major currencies, potentially enhancing returns when converting back to their local currency.
Diversification Benefits
Investing in India provides geographical diversification to your global portfolio, reducing overall investment risk through exposure to different market cycles.
Emotional Connection
For many NRIs, investing in India maintains a connection to their roots while contributing to the country's development and potentially planning for future return.
Tax Benefits
Various investment options in India offer tax advantages for NRIs, including tax-free returns on certain investments and favorable tax treaties with many countries to avoid double taxation.
Make An Informed Decision
FAQs: Taxation for Investments in GIFT City
- Taxes for IFSC funds vary by investment type:
- Long-Term Capital Gains: For equity shares held over 12 months, taxes are around 12%, including applicable surcharges and cess.
- Short-Term Capital Gains: For equity shares held under 12 months, the tax rate is around 17% with applicable surcharges and cess.
- Interest Income: Income from temporary investments is taxed at 10%.
- Dividend Income: This is taxed at 10%.
- Derivative Gains: Certain gains from derivatives like covered calls may be tax-exempt.
- Additionally, these AIFs are exempt from tax on bond trading and incur a 10% tax on interest income. This framework makes GIFT City AIFs particularly appealing to Non-Resident Indians (NRIs), who are subject to a tax deduction of 10-15% on equity-focused AIF investments.
- Derivatives: Tax exempt
- The trust managing the IFSC fund is responsible for paying all applicable Indian taxes by March 31st of the tax-filing year.
- Structurally, both IFSC funds and domestic AIFs in India operate as irrevocable trusts with investors as beneficiaries. The trust itself handles all applicable taxes for investment activities, freeing investors from direct tax payments in India. Key Taxation and Regulatory Differences for IFSC Funds:
- IFSC funds target offshore and NRI investors seeking to invest in Indian & foreign equities, with or without an Indian tax ID (PAN)
- Investment manager fees for IFSC funds are exempt from the standard 18% GST, unlike those for domestic AIFs.
- Gains from derivatives in IFSC funds are not taxed, while domestic AIFs outside of this zone must treat such profits as business income and are subject to taxation that can reach up to 42.7%.
- IFSC funds offer lower tax rates on interest and dividend income compared to domestic AIFs, which can face rates between 35-42%.
- Yes, since an NRE bank account in India is also considered equivalent to an offshore bank account.
- While the criteria to invest in the IFSC fund is to be a non-resident, it is also important to note that the funds to be invested in the IFSC fund has to flow from offshore bank accounts. Therefore, even if the investor is a non-resident, the investment funds cannot be invested from Indian local bank accounts to the IFSC fund. Investment funds / corpus can be invested by the investor from their offshore bank account or bank account in GIFT IFSC, or NRE bank account in India. Thus, if the NR wants to invest their local funds in the IFSC fund, they will have to repatriate the funds to their offshore account and then invest the same in the IFSC fund.
- USD Only.
- USD 1,50,000
- Yes, the fund will obtain an EIN from the IRS soon, and thereafter, the fund shall also file Form 8832 with the IRS for the fund's election as a pass through entity as per the US laws. The purpose of this exercise is to enable the US investors to take credit for the taxes paid by the IFSC fund in India. As per our limited understanding, there are potentially two methods to take the tax credit in your US returns – 1) Claim credit against taxes due in the US; or 2) Reduce the income base. You may want to check with your tax advisor on the right method for your filing.