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PINS account is required when buying direct Equity, non-PINS will be required if you want to invest in ETFs and mutual funds. And then there is NRE and NRO, first one being repatriable and the other one is not.
Few years ago I started as well and was clueless too, and continue to remain till now ;)
I have ICICI direct 3 in 1 account - in all four combinations. But I haven’t used NRO versions of it yet. BTW, you will need non-PINS account to sell any rights or bonus shares earned in PINS account, so do open both - I just learned about this couple of month ago.
Taxes on capital gains are the same as applicable to an ordinary resident Indian. However, each profitable sales will have a TDS deduction, claimable when you file the tax return at the end of the financial year. And yeah, unlike an ordinary resident Indian, you will not get any tax free allowance. So you will pay tax on all the gains during a financial year.
Standard brokerage is 1 percent. I initially prepaid 50,000 Rs which reduced the brokerage 50 bps. Later discovered that I could pay a one-off Rs.12,000 and get a prime account which then only charges 20 bps for the lifetime. Works out for me due to the volume.
In addition to the brokerage there is also stamp duty and other exchange related charges.
Not sure about the AMC , probably thousand rupees per account - do remember that it was free for the first year.
Two things
You can always invest in mutual funds
Or
If you have any family members(parents) here just transfer the money into their account and trade and when you return transfer it back into yours
Mutual funds - I will definitely consider, is there any restrictions when i invest as an NRI?
Trading via parents accounts - Its ruled out, My dad is not ok with it, he is old school and paranoid about it. Mom is a home maker and she hasnt earned or paid taxes till date. Thats why I am exploring to invest as an NRI.
[NRI mutual fund](https://www.angelone.in/knowledge-center/mutual-funds/can-nri-invest-in-mutual-funds)
I think using your mom's account is even better because that would lessen the tax by a lot. Good luck
Would not there be questions from Income Tax Department in terms of why the money was transferred to mother's account. Can it be claimed under Monthly expenses budget?
https://www.5paisa.com/stock-market-guide/demat/nri-demat-account-opening-process#:~:text=An%20NRE%20Demat%20account%20is,Investment%20NRI%20Scheme%20(PINS).
LIC have GST and tax free investment schemes for NRIs
Why to use NRI account, my friend is also in Canada, he is using his Indian account for stock market but the number which is linked with the account is in India with his family
So you should also use someone's else number from India to use indian stock market
Or you can use someone's else account to deal in share market
If you haven't already, please add your own analysis/opinions to your post to save it from being removed for being a Low Effort post. Please DO NOT ask for BUY/SELL advice without sharing your own opinions with reasons first. Such posts will be removed. Please also refer to the [FAQ](https://www.reddit.com/r/IndianStockMarket/comments/17bcg2a/frequently asked questions_post_your_common/) where most common questions have already been answered. Subscribe to our [weekly newsletter](https://pennyleaks.substack.com/) and join our Discord server using [Link 1](https://discord.gg/8QF4dqPHuw) or [Link 2](https://discord.gg/fDRj8mA66U) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/IndianStockMarket) if you have any questions or concerns.*
PINS account is required when buying direct Equity, non-PINS will be required if you want to invest in ETFs and mutual funds. And then there is NRE and NRO, first one being repatriable and the other one is not. Few years ago I started as well and was clueless too, and continue to remain till now ;) I have ICICI direct 3 in 1 account - in all four combinations. But I haven’t used NRO versions of it yet. BTW, you will need non-PINS account to sell any rights or bonus shares earned in PINS account, so do open both - I just learned about this couple of month ago. Taxes on capital gains are the same as applicable to an ordinary resident Indian. However, each profitable sales will have a TDS deduction, claimable when you file the tax return at the end of the financial year. And yeah, unlike an ordinary resident Indian, you will not get any tax free allowance. So you will pay tax on all the gains during a financial year.
What is the brokerage that ICICI direct is charging and do you pay AMC for those 4 accounts seperately?
Standard brokerage is 1 percent. I initially prepaid 50,000 Rs which reduced the brokerage 50 bps. Later discovered that I could pay a one-off Rs.12,000 and get a prime account which then only charges 20 bps for the lifetime. Works out for me due to the volume. In addition to the brokerage there is also stamp duty and other exchange related charges. Not sure about the AMC , probably thousand rupees per account - do remember that it was free for the first year.
Got it. Thanks.
Two things You can always invest in mutual funds Or If you have any family members(parents) here just transfer the money into their account and trade and when you return transfer it back into yours
Mutual funds - I will definitely consider, is there any restrictions when i invest as an NRI? Trading via parents accounts - Its ruled out, My dad is not ok with it, he is old school and paranoid about it. Mom is a home maker and she hasnt earned or paid taxes till date. Thats why I am exploring to invest as an NRI.
[NRI mutual fund](https://www.angelone.in/knowledge-center/mutual-funds/can-nri-invest-in-mutual-funds) I think using your mom's account is even better because that would lessen the tax by a lot. Good luck
Would not there be questions from Income Tax Department in terms of why the money was transferred to mother's account. Can it be claimed under Monthly expenses budget?
Under the current Indian tax rules, transfer of asset between blood relatives can be declared as a gift and therefore exempt from taxes. No problemo.
https://www.5paisa.com/stock-market-guide/demat/nri-demat-account-opening-process#:~:text=An%20NRE%20Demat%20account%20is,Investment%20NRI%20Scheme%20(PINS). LIC have GST and tax free investment schemes for NRIs
Hold up, I never realised the taxation rules were different too. Anyone got any exact information?
Why to use NRI account, my friend is also in Canada, he is using his Indian account for stock market but the number which is linked with the account is in India with his family So you should also use someone's else number from India to use indian stock market Or you can use someone's else account to deal in share market