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Investments
| INVESTMENTS IN INDIA |
| Nature of Investment |
Procedure |
| PORTFOLIO INVESTMENT SCHEME IN SHARES & CONVERTIBLE DEBENTURES THROUGH STOCK EXCHANGE |
The NRIs are permitted to invest on delivery basis subject to following conditions:
- Purchase/sale
Transactions shall be routed through:
-Only one designated branch of an authorised Dealer (Bank).
-A registered broker on a recognised stock exchange.
The investment by each individual NRI should not exceed 5% and the aggregate investment by all NRIs/OCBs should not exceed 10% or 24% (as the case may be) of the paid-up capital / each series of convertible debentures respectively of the company.
ON REPATRIATION BASIS
The payment is received through an inward remittance in foreign exchange or by debit to the investor's NRE/FCNR account. In that case the net sale / maturity proceeds (after payment of taxes) of such securities shall be allowed to be remitted abroad or at his option credited to NRE / FCNR/ NRO account
ON NON-REPATRIATION BASIS
The payment is received through an inward remittance in foreign exchange or by debit to the investor's NRE/FCNR/NRO account. In that case the net sale / maturity proceeds (after payment of taxes) of such securities shall not be allowed to be remitted abroad and credited to NRO account
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| INVESTMENT IN NEW ISSUE OF SHARES /CONVERTIBLE DEBENTURES ON NON-REPATRIATION BASIS |
Non resident Indian may without any limit, purchase on non-repatriation basis, shares or convertible debentures of an Indian company issued by way of public issue or private placement or right issue subject to following conditions
The payment for purchase of shares and debentures is received out of funds held in NRO account or through an inward remittance in foreign exchange or by debit to the investor's NRE/FCNR account.
Where the NRI is resident in Nepal or Bhutan, the amount of investment shall be paid only by way of remittance in foreign exchange through normal banking channels.
The Indian company should not be a Chit fund or a Nidhi company nor should it be engaged in agricultural /plantation activities or real estate business or construction of farm houses or dealing in Transferable Development Rights (excluding development of townships, construction of residential /commercial premises, roads, bridges etc.)
The sale / maturity proceeds (net of applicable taxes) shall be credited to NRO account.
The amount invested in shares or convertible debentures under this Scheme and the capital appreciation thereon shall not be allowed to be repatriated.
Repatriation of Dividend / Interest is allowed after payment of taxes.
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| DOMESTIC MUTUAL FUNDS |
No permission is required to purchase or sale of units. The transfer/sale is required to be arranged through registered stock broker or a recognised stock exchange or tender units of Mutual funds to the issuer for repurchase or for payment of maturity proceeds or tender Government security /treasury bills to the RBI for payment of maturity proceeds
ON REPATRIATION BASIS
The payment for purchase consideration is received through an inward remittance in foreign exchange or by debit to the investor's NRE/FCNR account.
The net sale / maturity proceeds (after payment of taxes) of such securities shall be allowed to be remitted abroad or at his/its option credited to NRE / FCNR/ NRO account
ON NON-REPATRIATION BASIS
The payment for purchase consideration is received through an inward remittance in foreign exchange or by debit to the investor's NRE/FCNR/NRO account. account.
Sale proceeds are Not Repatriable and are required to be credited to NRO account. Repatriation of Dividend / Interest is allowed after payment of taxes.
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| GOVERNMENT COMPANIES (Public Sector Undertaking) BONDS AND SHARES GOVERNMENT SECURITIES (OTHER THAN BEARER SECURITIES)/ TREASURY BILLS
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TAXATION ON INVESTMENT INCOME IN INDIA
| INCOME TAX |
| NATURE |
TDS |
Rate of TAX** |
| Dividend - Mutual Fund Income Distribution |
NIL |
NIL |
| Long Term Capital Gains |
| Equity shares and equity oriented Mutual fund Units sold on Recognised Stock Exchange |
NIL |
NIL |
| Specified Assets (purchase in forex) |
11.22% |
10.20% |
| Other Asset (including mutual funds & equity shares other than above) (without indexation Benefit) |
11.22% |
10.20% |
| Other Asset (including Mutual funds & equity shares other than above) (with indexation benefit) |
22.44% |
20.40% |
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| Short Term Capital Gains |
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| Equity shares and equity oriented Mutual fund Units sold on Recognised Stock Exchange |
11.22% |
10.20% |
| Other Asset (including mutual funds & equity shares other than above) |
33.66% |
Normal Slab Rates |
Interest
Specified Asset (purchase in forex) |
22.44% |
20.40% |
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| Other Asset |
33.66% |
Normal Slab Rates |
| Normal Rates of Taxation |
| Individual Income |
Rate |
| Upto Rs.1, 00,000/- |
Nil |
| Rs. 1,00,000/- to Rs.1, 50,000/- |
10% of the amount by which the income exceeds Rs. 100,000/- |
| Rs. 1,50,000/- to Rs. 2,50,000/- |
5,000/- plus 20% of the amount by which the income exceeds Rs.1,50,000/- |
| Above Rs.2, 50,000/- |
25,000/- plus 30 % of the amount by which income exceeds Rs.2,50,000/- |
| Surcharge @ 10% (If income exceeds Rs.10,00,000/-) |
| Education Cess: - |
2% on Total Tax |
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| SECURITIES TRANSACTION TAX (STT) |
| Nature Of Transaction |
| Tax Rate |
Equity shares transaction in a Recognized Stock Exchange:-
1. With Delivery
Purchaser
Seller
2. Without Delivery
Seller
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0.125%
0.125%
0.025%
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Derivative transactions in a Recognized Stock Exchange:-
Seller
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0.0166%
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| Sale of Units of Equity Oriented Mutual Fund: -
Seller
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0.25%
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Note:
- The above rates will be effective from the 1st June, 2005.
- STT paid on purchase transaction shall not be allowed to be added to the purchase cost.
- STT paid on sales transaction shall not allowed to be deducted from sales value.
- There is no Tax credit for STT paid.
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