PPF/NSC

# NRIs cannot open new PPF accounts or buy fresh NSCs

# They can continue old accounts

# Both earn 8 per cent compound interest a year

# Section 80C benefit

# PPF interest is tax-free

# NSC interest is fully taxable

# Repatriation through NRO account and only up to $1 million per calendar year

Stocks

To invest from abroad:

# Open account called Portfolio Investment Scheme (PINS)

# Buy/sell shares and convertible debentures through PINS

# Online buying is possible

# There are maintenance and transaction charges

# NRIs can’t trade in derivatives

# Limitless transactions in the primary market

# In secondary market, limit is of 5 per cent of a company’s paid up capital

# Similar limit for debentures

Taxation:

# Long term - no capital gains tax

# Short term - capital gains tax is charged

# Securities transaction tax of 0.2 per cent

Repatriation:

# Is allowed if original purchase was made on repatriation basis

# And if investments were made from NRE or FCNR account

Mutual Funds

# Need an NRO or NRE account

# Can invest like a resident Indian

# Online buying is possible

# Can use Sebi - registered portfolio management services

# Tax impact is the same as a resident Indian

# Repatriation is possible if original purchase was made on repatriation basis

# And if investments were made from NRE or FCNR account

Real Estate

# You can own real estate in India

# But, not agricultural land, plantation property or farmhouse

# Money can be remitted abroad if property held for 10 years

# If held for less than 10 yrs need to keep in NRO account for remaining period

# Repatriation allowed only for 2 properties

# If bought before leaving: Up to $1 million a year from an NRO account

# If bought through NRE and FCNR accounts: Principal amount can be repatriated

Inheritance

# Can hold without RBI permission

# Sale proceeds up to $1 million per calendar year can be repatriated without RBI permission

# Tax: Registration and stamp duty same as for resident Indians