Given the uncertainty, we don’t want the funds to get accumulated in savings accounts and want to invest in other instruments. Do we need to break these instruments, open an NRE or NRO account and then invest back? Any income generated from India can be credited to the NRO account; however, there is a limit of repatriation in the NRO account. Please note that some asset management companies (AMCs) do not allow NRIs to invest in India due to compliance issues, hence first get the confirmation from the fund house. Tax treatment on capital gains on shares and mutual funds is similar for NRIs and residents except that AMCs will be liable to deduct tax at source from an NRI’s income before crediting the gains.

Source: Mint May 10, 2021 19:41 UTC