FAQs
- What is the Restict List/Watch List?
- Can a NRI square up trades or funds in the same settlement?
- How do I remit money to India?
- Is a NRI required to file a Return of Income every year?
- Can a NRI deposit hard currency in NRE or FCNR account, while in India?
- What is the Restrict List/Watch List?
- There is a ceiling on aggregate investment by NRIs/OCBs. When the NRI/OCB holding in any scrip is about to breach the maximum prescribed limit, RBI puts the concerned scrip on the Restrict list/ Watch list.
This list is published by the RBI as and when there is any movement into/out of the list. NRIs/OCBs are required to check the list before making any transactions in the scrip. In case, the NRI holding crosses the maximum prescribed limit for any scrip, then the NRI shall immediately have to square off the excess holdings. Any profit on sqauring of this transaction shall not be credited to the NRI. However, loss if any, shall have to be borne by the NRI.
- Can a NRI square up trades or funds in the same settlement?
- A NRI can only do delivery-based transactions. He cannot do day trading or square up transactions in the same settlement. Also, he shall have to make bill to bill settlements. He shall not be allowed to adjust any purchase transaction against any sale consideration of the previous settlement.
- How do I remit money to India?
- The approved method of sending remittances is through normal banking channels. These are converted by the banks at the market rate of exchange. Money can be sent through cheques, demand drafts or through telegraphic and wire transfer. Wire transfer is the most preferred mode of remittance as it is cost effective, swift and eliminates the risk of any transit loss, possibility of which exists in the case of DD, etc. Most banks also provide for other methods of sending money to India either through net transfer or card transfer.
- Is a NRI required to file a Return of Income every year?
- Where a NRI has total taxable income below the exemption limit, he is not required to file a return of Income Tax. Also, where the total assessable income consists of only Investment Income or LTCG and TDS has been deducted from such income, then the NRI is not required to file any Income Tax return.
- Can a NRI deposit hard currency in NRE or FCNR account, while in India?
- When in India, a NRI can deposit upto $5,000 per day in hard currency in the bank account. In case of Travellers Cheque, the limit is $10,000. However, in case the NRI has declared the cash at the customs, then he can deposit upto the extent of the amount declared in the customs.
