Skip to content
AH Finserv

For NRIs

Investing in India from where you are

Most of what makes this confusing is not the investing. It is the account you invest from, the country you live in, and how tax is collected.

THE GULFKERALA
Most of the people we help are working in the Gulf and investing back home.

NRE or NRO — the choice that decides repatriation

Both are accounts for non-residents, and the difference only becomes obvious when you want to move money back out of India.

NRE

Funded from income you earn abroad. Investments made from an NRE account are fully repatriable — both what you put in and what it grows to can be sent back out.

NRO

For income arising in India — rent, a pension, dividends. Repatriation from an NRO account is capped, currently at USD 1 million per financial year across eligible assets, and needs documentation.

Last verified 2026-09-24. Repatriation limits are set by the RBI under FEMA and do change — check rbi.org.in before you rely on a figure.

Say this part early

If you live in the US or Canada, read this first

Many Indian fund houses will not accept investments from NRIs resident in the United States or Canada. It is not a rule about you — it is the reporting burden those countries’ tax regimes place on the fund house, and most have decided it is not worth carrying.

A handful do accept them, sometimes with extra paperwork or restrictions on how you transact. If you are in either country, that is the first thing to establish, before anything else.

If you are in the Gulf — the UAE, Saudi Arabia, Qatar, Oman, Kuwait or Bahrain — this restriction does not generally apply to you, and the process is considerably simpler.

What the process looks like

  1. 01

    An NRE or NRO account

    Investments are made from one of these, not from an ordinary resident savings account. Which one you use decides what you can take back out later, so it is worth getting right at the start rather than discovering it at redemption.

  2. 02

    PAN and KYC

    You need a PAN and completed KYC, plus a FATCA and CRS declaration of your tax residency. Most of this can be done from abroad; some steps may need attestation depending on where you are.

  3. 03

    Check the fund house accepts you

    This depends on where you live, not on who you are. See below — it is the one step people skip and the one that stops applications.

  4. 04

    Invest and keep the paperwork

    Your units are held in your name. Keep your account statements and your tax residency details current, particularly if you move country.

Tax is deducted before you receive the money

This is the main practical difference from a resident investor. When a resident redeems, they receive the full amount and settle tax themselves. When a non-resident redeems, tax is deducted at source first and you receive the balance.

India also has double taxation avoidance agreements with many countries, including the Gulf states. Depending on where you are tax-resident, that may change what you ultimately owe or let you claim credit at home. This is the point at which a qualified tax professional in your country of residence is worth more than anything we can tell you.

Last verified 2026-09-24. Rates and thresholds change with each Finance Act — check incometax.gov.in rather than relying on any website, including this one.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.