Hi,
I’ve recently shifted to the UK.
What I wanted to do –
1. Open an NRE account and a PINS account
2. Open a demat and trading account linked to the NRE(because I dont want TDS in India)
3. Open a FundsIndia account to hold MFs in one place – linked to same NRE(again because I dont want TDS in India).
The reason for having both linked to the same NRE account, is to park money temporarily in liquid funds, and have flexibility to quickly re-deem and buy equities when they are at “reasonable” prices.
My problems:
1. Different banks are wording things differently regarding the TDS they practice. For e.g. ICICI mentions clearly that they withhold TDS temporarily on the full sale amount on equities, but correct their withholding at End Of Day. But they dont mention whether you can invest in MFs through them.
2. HDFC Securities doesnt offer MFs to NRIs. Their TDS on equities is not very clear to me.
3. Funds India seems to favour linking NRO account, for some reason. That is a disaster, as on redemption the bank would promptly tax me at 20% of sale proceeds and not on the actual profit.
4. Some sites suggest that MF companies ask for documents showing source of money, while investing or redeeming.
So I welcome suggestions from fellow investors and NRIs on how I should tackle this.
PS: I’ve researched a lot on the UK-India tax angle, my tax liability and the mode of payment/refund claim. Probably I will publish it for everybody’s benefit if needed.
Regards,
J Naut