Funds received from NRI (OCI card holders) will be treated as domestic or foreign funds?


Ozg Lawyers Ⓥ Ozg Lawyers Ⓥ Ozg Lawyers Ⓥ Ozg Lawyers

Is fund received from NRI (OCI card holders) will be treated as domestic or foreign fund?
Answer: It can be either of one and depends on following two points.

Repatriable Investments (Foreign):
Such investments are made through money in Non-resident external (NRE) accounts or FCNR accounts. These type of accounts are funded by money remitted from abroad. Redemption proceeds of such investments can be repatriated.

Image result for ozg fema

Non-repatriable Investments (Domestic):
If the mutual fund investment was made through Non-resident ordinary account, the redemption proceeds can not be repatriated. However, as per RBI, authorised dealers can allow remittance/s upto USD 1 million, of balances in NRO accounts/of sale proceeds of assets on production of an undertaking by the remitter together with a certificate issued by a Chartered Accountant in Annexure A and B as prescribed by the Central Board of Direct axes (CBDT).

Ozg FEMA Experts
Ozg Lawyers Ⓥ Ozg Lawyers Ⓥ Ozg Lawyers Ⓥ Ozg Lawyers

Email: ask@fema.in