The Classic Partners LLP

Investments in India for NRIs

From fixed deposits and mutual funds to equities and real estate — what NRIs can invest in, on what basis (repatriable or not), and how each investment is taxed. We structure compliant, tax-efficient India portfolios.

Plan Your India Portfolio

What NRIs Can Invest In

Bank deposits: NRE and FCNR deposits with tax-exempt interest and full repatriability; NRO deposits for Indian earnings (interest taxable).
Equities: listed shares through the Portfolio Investment Scheme (PIS) via an NRE/NRO-linked demat and trading account.
Mutual funds: most AMCs accept NRI investments from NRE/NRO accounts (US/Canada NRIs face additional FATCA-driven restrictions with some fund houses).
Real estate: residential and commercial property permitted; agricultural land, plantations, and farmhouses are barred under FEMA.
NPS: NRIs holding Indian citizenship can invest in the National Pension System.
Bonds & G-Secs: government securities and specified bonds, including via the Fully Accessible Route.

Repatriable vs Non-Repatriable Basis

Investments funded from NRE/FCNR sources are generally repatriable — principal and gains can move abroad freely. Investments from NRO funds are repatriable within the USD 1 million per year window after tax — see repatriation of assets. Choosing the funding account at purchase decides how easily you can exit later.

How NRI Investments are Taxed

Equity/equity MF: LTCG concession under Section 112A above the exempt threshold; STCG at the prescribed rate — see capital gains.
Debt funds and NRO interest: taxable at slab rates with TDS at source; refunds via return filing.
Property: rental income taxable with standard deduction; sale gains taxable with TDS on the sale — buyers now use a simplified PAN-based challan (no TAN) for purchases from NRIs from October 2026.
Treaty relief: DTAA rates often cap Indian tax on interest and dividends for treaty-resident NRIs.
Special regime: qualifying foreign-exchange assets may use the concessional Chapter XII-A rates — see special provisions for NRIs.

Our NRI Investment Support

Account Architecture

NRE/NRO/FCNR structuring aligned to repatriation goals.

PIS & Demat Setup

Bank PIS permission, demat, and broker onboarding guidance.

Tax-Efficient Allocation

Asset placement using exemptions and treaty rates.

Property Transactions

TDS, capital gains, and lower-deduction certificates on deals.

Compliance & Filing

ITR filing with investment income correctly reported.

Exit & Repatriation

Repatriating proceeds with 15CA/15CB certification.

Frequently Asked Questions

Can NRIs invest in Indian mutual funds?

Yes, through NRE or NRO accounts after NRI KYC; investors based in the US or Canada face additional restrictions with some fund houses due to FATCA, though several AMCs do accept them.

Can an NRI buy agricultural land in India?

No. NRIs and OCIs cannot purchase agricultural land, plantation property, or farmhouses, though they may inherit such property.

What is the Portfolio Investment Scheme (PIS)?

PIS is the RBI route through which NRIs buy and sell listed Indian shares on a recognised stock exchange, operated through a designated bank account linked to their demat and trading accounts.

Are NRI investment gains repatriable?

Investments made from NRE/FCNR funds are freely repatriable along with gains; investments from NRO funds can be repatriated within the USD 1 million per financial year limit after payment of applicable taxes.

How is TDS handled on NRI investments?

Payers deduct TDS on NRO interest, dividends, fund redemptions, and property purchases from NRIs; where the treaty rate or actual liability is lower, the excess is recovered by filing the income tax return or prevented via a lower-deduction certificate.

Building or restructuring your India portfolio?

We'll set up the right accounts, minimise TDS, and keep every investment FEMA-compliant and repatriable.