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NRI Corner
It would be appropriate for you to consult your Chartered Accountant/ Tax consultant to get the most accurate and the latest information on your tax liability.
Non Resident Indians and Persons of Indian Origin residing abroad (NRIs) have been granted a general permission by Reserve Bank of India Schedule 5 of the Foreign Exchange Management Regulations, 2000 for investing in / redeeming units of the mutual funds subject to conditions set out in the aforesaid regulations.
An NRI cannot make the investment in foreign currency. He needs to give us a Rupee cheque from his NRE, NRO bank account in India.
Please refer the tax reckoner for details. Additionally, please note that Section 206AA of the Income Tax Act (the Act) provides for tax deduction at source at the higher of the following rates, if the recipient of the income has not furnished their Permanent Account Number (PAN). 
  • At the rate specified in the relevant provision of this Act 
  • At the rate or rates in force 
  • At the rate of 20%

To reduce the compliance burden of foreign companies and non-residents, the Finance Act, 2016 has relaxed the condition of obtaining a PAN by such foreign companies and non-residents, subject to the recipient foreign companies or non-residents (deductee) furnishing the following details:

  • Name
  • Email id
  • Contact Number
  • Address in the country or specified territory outside India of the home country of the non-resident

a certificate of residence in any country or specified territory outside India from the government of that country or specified territory if the law of that country or specified territory provides for the issuance of such certificate i.e. Tax Residency Certificate (TRC); and  Tax Identification Number (TIN) of the non-resident in the country or specified territory of his residence and, in case no such number is available, a unique number on the basis of which the non-resident is identified by the government of that country or specified territory of which he claims to be a resident. 

Yes, Unlike banks where a POA holder cannot open an account on behalf of the NRI/FIIs, 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 notarized 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/FII investor. His signature will be verified for processing any transaction/request.
  • Pan Card Copy
  • Indian Address Proof
  • Overseas Address prof
  • Tax Identification Number
FATCA is Foreign Account Tax Compliance Act and it is compulsory for all w.e.f 01/02/2016.

NRI other than US-Canada can invest in all AMC.

For US – Canada residence there is limitation of AMC’s. They can invest in below AMC’s only.

  • Aditya Birla Asset Management Company.
  • UTI.
  • L&T Asset Management Company.
  • SBI Asset Management Company.
  • Kotak Mahindra Asset Management Company.
  • Sundaram Asset Management Company.