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NRE to NRO Account Conversion: Do You Need Expert Assistance?

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 08, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
eluru Question by eluru on Oct 07, 2024Hindi
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Hi Can you suggest a professional who can help in converting the account to NRO and completing the work

Ans: If you're considering transitioning your account from direct mutual funds to regular plans, a Mutual Fund Distributor (MFD) or a Certified Financial Planner (CFP) like myself can certainly assist you with the process. We can help with not only converting your mutual fund account to an NRO account but also in ensuring your investments are properly aligned with your financial goals, particularly if you're an NRI.

With a regular MFD or CFP, you get personalized advice and portfolio management, which is especially helpful in situations where managing direct funds can be challenging. These professionals can guide you through tax implications, compliance issues, and overall financial planning.

Feel free to reach out, and I'd be happy to assist you with your conversion and ongoing financial planning needs!

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Sir my son in 2009 invested in Mutual fund rs.5000/- and again rs.5000/- another in 2011 total rs.10,000/- with Reliance mutuval funds later this company changed in the name of Nippon India private limite. My son at the of investments he had Old PAN no. Later on job purpose gone abroad and settled. He came in 2019 and submitted redeem his units say 2250 units currenly valued rs. 50,000 above . His application was rejected at first Old PAN Card not surrendered so he surrendered same with original attached with NRE status PAN and submitted agiain who they says You have to link his Aadhar card. He is not in a position to obtain this because he may get citizenship. I referred to SEBI and RBI to intervene but no response from them Please guide me how to redeem and get my son’s investments which I require for my ailing age of 78. Thanks in advance If you require his PAN no surrendered and obtained new NRE status PAN no.
Ans: Since your son cannot link his Aadhaar due to his NRI status, the best approach would be to reach out directly to Nippon India Mutual Fund and explain the situation. You can request the redemption process based on his NRI PAN and KYC status without Aadhaar linking.

Here's what you can do:

Contact Nippon India: Explain that your son is an NRI and cannot obtain an Aadhaar card. Request guidance for an NRI-specific redemption process.

Submit an NRI KYC Update: Ensure that your son's new PAN and NRI status are updated in the KYC records with the fund house. This can be done via the KYC Registration Agency (KRA) or CAMS for mutual funds.

Alternative Contact: If there is no response from the fund house, consider contacting AMFI or SEBI again, providing all necessary documents.

These steps should help you resolve the issue and redeem the units without requiring Aadhaar linkage.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 07, 2024

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I have invested in mutual funds through savings account in groww. Now the same account is converted to NRO account. Can I continue investigating from the same account? Account number is same and have invested in the same fund after converting to NRO. Should I continue investigating it? Is there anything I need to update about my NRI status?
Ans: Converting your savings account to a Non-Resident Ordinary (NRO) account can bring about several changes, especially when it comes to your investments in mutual funds. Here’s how to navigate your situation effectively.

Continuing Your Mutual Fund Investments
Since you have invested in mutual funds through your Groww account, you can continue investing from your NRO account. Here are some important points to consider:

Same Account Number: Since your account number remains the same, your investments in mutual funds through the Groww platform can continue. The transition to an NRO account does not automatically hinder your investment.

Fund Investment: As long as the mutual fund house allows investments from NRO accounts, you can keep investing in the same funds. However, ensure that the mutual fund you are investing in accepts funds from NRO accounts.

Updating Your NRI Status
When you convert to an NRO account, there are some updates and considerations you should be aware of:

Notify the Fund House: Inform the mutual fund house about your change in status to NRI. This is crucial for regulatory compliance and ensuring that your investments are correctly classified.

Tax Implications: NRI investments are subject to different tax treatments. Capital gains from mutual fund investments are taxed differently for NRIs, particularly with regards to Long-Term Capital Gains (LTCG) and Short-Term Capital Gains (STCG). You should familiarize yourself with these changes to manage your tax liability effectively.

KYC Compliance: Make sure your KYC (Know Your Customer) details are updated according to your NRI status. This may involve submitting new documents that reflect your NRI status, such as a valid passport, visa, and proof of residence abroad.

Why Professional Guidance is Essential
During transitions like converting to an NRO account, it’s often challenging to manage investments independently. Here’s why seeking professional help is advantageous:

Expertise in NRI Investments: A professional Mutual Fund Distributor (MFD) can guide you through the complexities of investing as an NRI. They can help you understand the implications of your status change on your investments.

Tailored Financial Advice: An MFD can provide personalized advice based on your financial goals, risk appetite, and investment horizon, ensuring that your portfolio aligns with your needs.

Assistance with Documentation: Managing the necessary paperwork during this transition can be overwhelming. A professional can help ensure that all required documents are submitted correctly and promptly.

Handholding Throughout the Process: Having an expert to assist you can ease your concerns and help you navigate the investment landscape confidently. They will be there to address any queries you may have and provide ongoing support.

Final Thoughts
You can continue investing from your NRO account using your existing Groww account, as long as you keep the mutual fund houses informed about your NRI status. It’s vital to update your KYC details and understand the tax implications of your investments.

However, managing investments as an NRI can be complex. Therefore, engaging a certified professional MFD is highly recommended. They can provide you with the necessary guidance and support as you navigate this transition.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

..Read more

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T S Khurana

T S Khurana   |197 Answers  |Ask -

Tax Expert - Answered on Nov 23, 2024

Asked by Anonymous - May 11, 2024Hindi
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Can you please suggest on capital gains as per Indian taxation laws arising in the below two queries : 1) property purchased with joint ownership, me and my wife’s name in 2015 at a cost of 64,80,000, housing improvements done for the cost of 1000000 and brokerages of 200000 paid and sold the same property at 10000000 in Dec 2023? 2) 87% of the proceeds got from the deal i.e 8700000, have been reinvested to pay 25% amount in purchasing another joint ownership property in Dec 2023, 3) I have invested in another under construction property in Nov 2023 by taking housing loan, which is on me and my wife’s name worth 1.4 cr, here the primary applicant is me only while wife is just made a Co applicant in the builder buyer agreement and also on the housing loan . So what are the LTCG tax liabilities arising from the above 3 scenarios for FY 2023-2024 and FY 2024-2025. I intend to sale off the property acquired in (2) by Dec 2024 and use that proceeds to close the housing loan for the property acquired in (3), will this sale of property be inviting any tax liabilities if the complete proceeds received from the sale of the property in (2) would be utilised to close the housing loan taken in Nov 2023 for the property in (3) ? Since in FY 23-24, I would be claiming the LTCG from the sale proceeds of 1) invested in the purchase of property in 2), and I intend to sale off this property in Dec 2024, will the LTCG claim be forfeited on the property sale in (1), should I hold this property at least for further 1 year so that sale of this property in 2) will not invite STCG?
Ans: (A). Let's first talk about F/Y 2023-24 :
You jointly sold a Property during the year for Rs.76.80 lakhs (64.80+10.00+2.00), & sold the same for Rs.100.00 lakhs.
You have jointly also purchased Property No.3 (I suppose it is Residential only), for Rs.140.00 lakhs.
You should avail exemption u/s-54 & file your ITR accordingly. Please disclose all details about sale & purchase in your ITR.
02. Now coming to the F/Y 2024-25 :
You intend to Sell Property No.2, which was acquired in 2023-24. Any Gain on Sale of it would be Short Term capital Gains & taxed accordingly.
Alternatively, you may hold this sale of property no.2 (for 2 years from its purchase) & avoid STCG
You are free to utilize the sale proceeds in a way you like, including paying off your housing Loan.
Please note to avail exemption u/s 54 only from investment in property no.3 & not 2.
Most welcome for any further clarifications. Thanks.

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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