NRI / OCI Investment Tool
Permissible investments in India for NRIs and OCIs with tax implications.
Reference guide for Non-Resident Indians (NRIs) on permitted investments in India under FEMA — account types, repatriation rules and tax treatment.
NRI Bank Account Types
| Account | Currency | Source of Funds | Repatriation | Tax Status |
|---|---|---|---|---|
| NRE | INR | Foreign earnings only (remitted from abroad) | Freely repatriable | Interest tax-free in India |
| NRO | INR | Indian income (rent, pension, dividends) + foreign funds | USD 1 mn / FY (with CA cert) | Interest taxable; TDS @ 30% applies |
| FCNR(B) | Foreign (USD, GBP, EUR etc.) | Foreign earnings remitted | Freely repatriable | Interest tax-free in India |
| RFC | Foreign | After returning to India (for returning NRIs) | Freely repatriable | Tax-free if RNOR status |
Permitted Investments for NRIs
| Investment | Permitted? | Conditions / Notes |
|---|---|---|
| Indian listed equity shares | Yes | Via Portfolio Investment Scheme (PIS) account; max 5% per company, 10% aggregate |
| Mutual funds (equity / debt) | Yes | Via NRO / NRE; KYC and FATCA compliance required |
| Indian government bonds / G-Secs | Yes | Including via FPI route or Fully Accessible Route (FAR) |
| Corporate bonds / NCDs | Yes | Subject to issuer-specific FPI limits |
| Residential / commercial property | Yes | No restriction on number; CANNOT buy agricultural land / farmhouse / plantation |
| Agricultural land / farmhouse / plantation | No | Only via inheritance permitted |
| Bank fixed deposits | Yes | NRE FD interest tax-free; NRO FD interest taxable with TDS |
| Public Provident Fund (PPF) | Existing only | NRIs cannot open new PPF; can continue existing account till maturity (no extensions) |
| National Savings Certificate (NSC) | No | Cannot open new; existing held till maturity |
| Senior Citizen Savings Scheme | No | Not available to NRIs |
| NPS Tier-I | Yes | NRIs aged 18-65 permitted (subject to KYC) |
| Sovereign Gold Bonds (SGB) | No | Not available; can buy gold ETFs instead |
| Cryptocurrency / VDA | Caution | Indian exchanges may permit with NRO funds; tax @ 30% on gains; high regulatory uncertainty |
| Partnership firm / sole proprietorship | Conditional | Non-repatriable basis allowed in non-agricultural / non-plantation / non-print media businesses |
Key compliance reminders for NRIs:
- Residential status: Determined under Section 6 (Income Tax Act, 1961) / Section 6 (Income Tax Act, 2025 from TY 2026-27). Generally non-resident if <182 days in India during FY.
- FBAR / Schedule FA: Resident Indians (not NRIs) must disclose foreign assets in Schedule FA of ITR. NRIs are exempt.
- FEMA residential status: Different from Income Tax. Under FEMA, an NRI is one residing outside India for employment / business / indefinite stay.
- Repatriation from NRO: USD 1 million per FY (calendar) with Form 15CA/CB (now Form 145/146 from TY 2026-27). Requires CA certification.
- PAN mandatory: Required for all investment, banking and property transactions.
- Aadhaar: Not mandatory for NRIs.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.
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