L&T Mutual Fund
L&T Mutual Fund

FAQs

As per Income Tax Act:
Non Resident Indian is a person who is not a resident of India.
An individual is deemed to be a resident, if
  • (A) Individual has resided in India in that year for 182 days or more or
  • (B) Having within the 4 years preceding that year been in India for 365 days or more and is in India for 60 days or more in that year.

Exceptions to residential status are

  •   Individual who is a citizen of India and who leaves India in any financial year for the purpose of employment outside India
  •   Individual who is a citizen of India or is a person of Indian origin (PIO) and who being outside India comes on a visit to India in any financial year.
"B" condition stated above shall not be applicable and individual status will be determined only by "A" condition in both the above cases.

A PIO refers to a citizen of any country (other than Bangladesh, Pakistan, Afghanistan, Bhutan, China, Nepal and Sri Lanka) if:
  • (A)  He/She holds an Indian passport OR
  • (B)  He/She or either of his parents or any of his grandparents was a citizen of India OR
  • (C)  The person is a spouse of an India citizen or a person referred to in (A) or (B)
An OCI refers to a Person of Indian Origin (PIO) who was a citizen of India on January 26, 1950 or thereafter or was eligible to become a citizen of India on January 26, 1950 if:
  •  He/she used to be an Indian citizen
  •   At least one parent, grandparent or great grand parent should have been an Indian citizen
  •   Married to an Indian citizen or existing OCI for at least 2 continuous years.
The 3 types of rupee accounts that can be maintained by NRIs are:
  •   NRE- Non Resident ( External) Rupee Account
  •   NRO- Non Resident ( Ordinary) Rupee Account
  •   FCNR-Foreign Currency Non Resident (Bank) Account

NRE accounts are opened for NRIs and it is also a rupee denominated account. This account is fully repatriable i.e. principal and interest amount both can be moved from India to the foreign country where the NRI is residing. All NRIs can open a NRE account. However, individuals and entities of Bangladesh and Pakistan require prior approval from the Reserve Bank of India.

NRO accounts are opened for only those individuals who are leaving India to take up an employment or establishing business outside India and is a rupee denominated account. Local funds that are not eligible to be remitted abroad must be credited to an NRO account. This account has restricted repatriablity .Any person resident outside India ( other than a person resident in Nepal and Bhutan) can open a NRO account. Individuals and entities of Bangladesh and Pakistan require prior approval from the Reserve Bank of India.

FCNR accounts are opened by NRIs and is denominated in any foreign currency which is freely convertible. This account is fully repatriable i.e. principal and interest amount both can be moved from India to the foreign country where the NRI is residing. All NRIs can open a NRE account. However, individuals and entities of Bangladesh and Pakistan require prior approval from the Reserve Bank of India.

An NRI cannot make an investment in foreign currency. He needs to give us a rupee cheque from his NRE or NRO account in India.

Repatriation basis: Payments for the purchase of units may be made by India rupee drafts purchased abroad or by cheques drawn on the NRE account.

Non-Repatriation basis: Payments for the purchase of units may be made by India rupee drafts purchased abroad or by cheques drawn on the NRO account.

Redemption proceeds will be paid by a cheque payable to the first holder. The proceeds will be payable in India rupees. Tax shall be deducted at source.

A TDS certificate is issued in the name of the first unit holder mentioning the details of the transaction and the tax deducted

TDS Certificates ( Form 16A) are dispatched to the investors once a quarter.

Yes. A POA has the authority to invest on behalf of the NRI investor and sign documents for initial and additional purchases as well as redemptions. While applying for purchase of units, the POA holder needs to submit the original POA or a copy duly notarized in original. The POA documents should contain the signatures of the Sole/First holder and the POA holder. The POA holder has the right to transact on behalf of the NRI only when the POA is registered.