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  NRIs
  Welcome to Ascent Financial Solutions Pvt. Ltd.
 
We offer entire set of Financial Planning and Wealth Management Services to NRIs and also provide additional services like tax calculation and tax filing in India.
  While providing Financial Planning and Wealth Management services to NRI's our focus is on following aspects.
 
Protection of Wealth
Deciding Risk Management Strategies to protect against downfall in different asset classes.
Preparing a proper insurance Plan to protect against uncertain times.
 
Accumulation of wealth
Putting in place strategies which can generate more Wealth at low Risk and fulfill Clients Wealth Management Goals.
Deciding and selecting financial vehicles which can generate faster wealth at low risk.
 
Distribution of wealth
Here we Prepare an effective Estate Plan for clients this includes preparing will, creating Private Family Trust if needed.
  Basic services provided to NRIs by us.
 
Goal Planning - Within Financial Plan every goal like Retirement , Child education, Child Marriage is provided.
Contingency Planning- Making a contingency Plan to meet uncertain times.
Net worth Statement-Preparing and analyzing Net worth statement.
Risk Management - Preparing effective strategies to manage financial risk. Also Preparing an effective insurance plan.
Estate Planning - Preparing will of the Client, creating private family trust if required.
Investment Planning - Preparing an effective investment Plan to achieve financial goals.
Tax Advisory : Here we try to reduce tax liability of our clients. We also provide tax calculation and tax filing services in India.
  Important Aspects:
 
Important aspects to be considered by NRI before investing in India.
 
Following information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult the concerned Professional and understand the individual implications.
 
We welcome you to the Indian Investment World. But before you commit yourself to any investments in India we recommend you to know about certain fundamental and important aspects of investing and taxation in India.
  Who is a Non- Resident Indian (NRI) ?
 
“non-resident” means a person who is not a “resident” and includes a person who is not ordinarily resident within the meaning of clause (6) of section 6.
  For the purposes of Income tax Act,—
  (1) An individual is said to be resident in India in any previous year, if he—
  (a) is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more ; or
 
(b) having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year.
  [Explanation.—In the case of an individual,—
 
(a)being a citizen of India, who leaves India in any previous year [as a member of the crew of an Indian ship as defined in clause (18) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958), or] for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words “sixty days”, occurring therein, the words “one hundred and eighty-two days” had been substituted ;
 
(b) being a citizen of India, or a person of Indian origin within the meaning of Explanation to clause (e) of, who, being outside India, comes on a visit to India in any previous year, the provisions of sub-clause (c) shall apply in relation to that year as if for the words “sixty days”, occurring therein, the words “one hundred and [eighty-two] days” had been substituted.]
  Who is a Person of Indian Origin (PIO)?
  A Person of Indian Origin (PIO) means a citizen of any country (other than Bangladesh or Pakistan), if :
  a. He /She at any time has held an Indian passport or
 
b. He/ She or either of his / her parents or grand parents was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955 (57 of 1995) or He / She is a spouse of an Indian citizen or of a person referred above
  What are the different types of rupee accounts that are permitted and can be maintained by NRIs?
  The three types of rupee accounts permitted, that can be maintained by NRIs are as follows :
  a. NRE : Non-Resident (External) Rupee Account
  b. NRO : Non-Resident (Ordinary) Rupee Account
  c. FCNR – B : Foreign Currency (Non –Resident) Accounts( Banks)
  What are NRE and NRO accounts?
 
Non-Resident (External) Rupee (NRE) account is a rupee account from which funds are freely repatriable. It can be opened with either funds remitted from abroad or local funds maintained in NRE/ FCNR accounts, which can be remitted abroad. The deposits can be used for all legitimate purposes. The balance in the account is freely repatriable.
 
Non-Resident Ordinary Rupee (NRO) account is a rupee account and can be opened with funds either remitted from abroad or generated in India. The amounts in such an account are generally non-repatriable. However, funds in NRO accounts can be remitted abroad subject to/as per various directives in force at the time of repatriation. More details can be found on the Reserve Bank of India (RBI) website www.rbi.org.in
  What is the distinction between NRE and NRO Accounts?
 
Balances held in NRE accounts can be repatriated abroad freely, whereas funds in NRO accounts cannot be remitted abroad but have to be used only for local payments in rupees. Funds due to the non-resident account holder which do not qualify, under the Exchange Control regulations, for remittance outside India are required to be credited to NRO accounts.
  Provisions for Investment in Mutual Funds by NRIs
  Does an NRI, requires any approval from the RBI to invest in mutual fund schemes?
 
No special approval is required. NRIs have been granted a general permission by RBI [Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000] for investing in/redeeming units of the schemes subject to conditions set out in the aforesaid regulations.
  Can an NRI invest in India?
  Yes.
 
Non Resident Indian's ('NRIs'),Person of Indian Origin('PIOs')) can invest in India subject to different provisions of schemes. For NRI's we recommend investment in Mutual Funds because it is much easier in process and more transparent and fruit full.
 
NRIs can invest in Mutual funds on a Repatriable/Non-Repatriable basis as per the provisions of Schedule 5 of the Foreign Exchange Management (Transfer or issue of Security by a Person Resident Outside India) Regulations, 2000 ('the Regulations') as explained below.
  (Note : NRI's of certain countries are not allowed to invest in few Asset Management Companies .)
  Repatriable Basis
 
To invest on a repatriable basis, you must have an NRE or FCNR Bank Account in India. The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on repatriation basis, subject to the following conditions :
 
The amount representing investment should be received by inward remittance through normal banking channels, or by debit to an NRE / FCNR account of the non-resident investor.
The net amount representing the dividend / interest and maturity proceeds of units may be remitted through normal banking channels or credited to NRE / FCNR account of the investor, as desired by him subject to payment of applicable tax.
  Non-Repatriable basis.
  The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on non-repatriation basis, subject to the following conditions :
 
Funds for investment should be provided by debit to NRO account of the NRI investor. Alternatively, funds may be invested by inward remittance or by debit to NRE / FCNR Account.
No permission of Reserve Bank either by the Mutual Fund or the NRI investor is necessary.
  Can an NRI invest in foreign currency?
 
An NRI cannot make the investment in foreign currency. He needs to give us a Rupee cheque from his NRE, NRO, NRSR bank account in India. He may also send a Rupee cheque from abroad payable in a bank in India. However, for an NRI to invest, it is mandatory that he maintains a bank account in India.
  Can a Power of Attorney (POA) invest on behalf of the NRI investor?
 

Yes, Unlike banks where a POA holder cannot open an account on behalf of the NRI, in a mutual fund the POA has the authority to invest on behalf of the investor and sign documents for initial and additional purchases as well as redemptions.

 
While applying for purchase of units the POA holder needs to submit the original POA or a copy duly notarised should be submitted. The Power of attorney should contain the signature of both the first holder and the POA holder. Only when the POA is registered does the POA holder have the right to transact on behalf of the NRI investor. His signature will be verified for processing any transaction/request.
  Following chart represents Provisions related to tax Liability and TDS Rates.
  Tax slab on capital gain
 
   
Tax Rates Under the Act
 
    NRI's/ PIO's     NRIs / PIOs /
other Non FII
non-residents
 
Short Term
Capital
Gain
Units of a
non equity
oriented
fund
Taxable at normal
rates of tax
applicable to the
assessee
    30% for non
residents non
corporate,
 
          40% for non
resident
corporates
(u/s 195)
 
  Units of an
equity
oriented
fund
15% on redemption of units where
STT is payable on redemption
(u/s 111A)
     
             
Long Term
Capital
Gain **
Units of a
non equity
oriented
fund
10% without
indexation, or
20% with
indexation,
whichever is
lower (u/s 112)
10% with no
indexation
benefit
(u/s 115AD)
  20% for non
residents
(u/s 195)
NIL
  Units of an
equity
oriented
fund
Exempt in case of redemption of
units where STT is payable on
redemption [u/s 10(38)]
  NIL NIL
   
  Dividend income is tax free in the hands of NRI's.
  Is the indexation benefit available to NRIs?
  Yes, if units are held for more than 12 months i.e. on long-term capital gains.
 
Please meet us we will help you in resolving these issues.
Here we basically help you.
Restructure your investments considering your circumstances.
Evolove Strategies that will help you achieving higher risk adjusted returns.
Direct your investments towards your Goals.
Deciding which insurance Policies should be continued and which should be surrenderd.
Making a proper succession.
 
 
   
   
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Phone: 0265-2321205
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