Currently, NRIs are permitted to transfer shares either to resident Indians or to non-resident Indians subject to fulfilment of certain rules and regulations. Here are the highlights: Transfer of shares from NRIs to NRIs is accorded General Permission by the Reserve Bank of India (RBI).
An NRI can gift shares to a resident Indian freely. The shares acquired through the PIS route cannot be transferred by way of a gift without prior approval from RBI unless they are being transferred to a relative as defined under Section 6 of Companies Act. … There is no tax levied on the NRI gifting the shares.
Thus, following steps are followed for successful registration of transfer of securities from Resident to Non-Resident:
- Receipt of consideration from non-resident.
- Obtain FIRC (Foreign Inward Remittance certificate) and KYC (Know your customer) of person residing outside India from AD Category-I bank.
Can NRI have a demat account in India?
Yes, NRIs can open demat account in India. They would require a PIS (Portfolio Investment Scheme) approval from RBI. The PIS enables NRIs to buy and sell shares on the stock exchange in India.
What happens to demat account after becoming NRI?
Once you become an NRI, you have the following choices: Convert your resident demat account to an NRO demat account. … You could transfer (offline) them to a family member in India and close the resident demat account. You can continue holding them in your resident India account on a non-repatriable basis.
How much money can be legally given to a family member as a gift in India?
Gifts up to Rs 50,000 per annum are exempt from tax in India. In addition, gifts from specific relatives like parents, spouse and siblings are also exempt from tax. Gifts in other cases are taxable.
How much money can be sent as gift from abroad to India?
There is no limit on sending money from USA to India, provided you pay the required taxes. But, there is a limit of US $14,000 per person per year for gift tax free transactions. Any amount sent above US $14,000 per person per year, the sender is responsible for paying the gift taxes.
What is ODI form of RBI?
Overseas Direct Investment (ODI): Direct investment outside India means investments, either under the Automatic Route or the Approval Route, by way of contribution to the capital or subscription to the Memorandum of a foreign entity or by way of purchase of existing shares of a foreign entity either by market purchase …
Transfer of shares refers to the intentional transfer of title of the shares between the transferor (one who transfers) and the transferee (one who receives). … The shares of a private limited company are not transferable subject to certain exceptions. A transfer deed is executed for the transfer of shares.
Who should file Form FC-TRS?
Onus of filing of form FC-TRS lies on the transferor/transferee whosoever is resident in India. 3. The transferor/transferee filing the form needs to register itself with RBI-Firms portal before filing it.
Can NRI use Zerodha?
You can open a demat and trading account with Zerodha by linking your Non-Resident Ordinary (NRO) or Non-Resident External (NRE) savings bank account. … Before you open a demat and trading account, you should obtain a Portfolio Investment Scheme (PIS) permission letter from the Reserve Bank of India (RBI).
Can NRIs invest in PPF?
Can NRI have PPF Account in India? Yes, an NRI can have a PPF account in India. However, the PPF account must have been opened while the person was still a resident of India. An NRI can only have a PPF account if they opened it as an Indian resident and prior to becoming an NRI.
Can NRI use Upstox?
While you need to have a PIS bank account to trade as an NRI, presently at Upstox we are only servicing clients who have their PIS account with HDFC,YES and ICICI Bank. … If you have one, you need to close the same and provide the closure confirmation and we will assist you open account in one of these banks.
Which demat account is best for NRI?
Here is the list of 5 best NRI Demat Accounts,
- Zerodha NRI Demat Account.
- IIFL NRI Demat Account.
- Sharekhan NRI Demat Account.
- Prostocks NRI Demat Account.
- Kotak Securities NRI Demat Account.
Can NRI open multiple demat account India?
NRIs can have as many as NRI Demat Accounts as they want. In most cases, NRIs open 2 demat accounts (NRE and NRO Demat Account) for repatriable and non-repatriable transactions. … Although, they can only have one NRI PIS bank account (required for trading on repatriation basis) with a designated bank approved by RBI.
What is the difference between NRI demat and normal demat account?
As the name suggests, the NRI Demat Account is a demat account for NRIs. The Normal Demat Account is for India resident customers.