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I will be travelling from India to USA on H1B visa, for a long term assignment (starting april-16).

I have invested in Indian equity mfs from my Indian salary savings. Want to know if my going-to-be NRI status would affect the tax implications on gains from these mf investments. Can I continue the SIP in these mfs.

I plan to keep these investment untouched for next 5-7 years unless I have some emergencies. Please advice if it is ok from tax purposes.

Thanks, R

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You can keep your Mutual Funds. You have to communicate your new status to fund house.

The SIP can continue. Please note you have to convert the savings account to NRO account. Most banks would keep the account number same, else you have to revise SIP debit to new NRO account.

From a tax point of view, it would be similar to resident status. Right now short term gains are taxed.

There are quite a few other things you may need to do. Although dated, this is a good article.

PS: Once you become resident alien in US for tax purposes, you are liable for taxes on global income.

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  • Thanks for the reply Dheer. The article helps much. Few more queries: 1) so i assume NRI (read residing in US) can invest in indian mutual funds. any idea about tax implications? (i have few active perpetual SIPs in MFs, & I wasn't sure if i need to stop them before leaving) 2)also, have edu loan. I plan to pay EMI (& residual $ savings) from my global earnings to this loan account. Hope it shouldn't be a problem. 3) On returning india & getting back d resident status, I need 2 communicate 2 mf house about change again & this will not have have any impact on d gains made in this period. Right? – R Singh Feb 9 '16 at 13:21
  • @RSingh this is Q&A and not discussion forum. The student loan is a separate question. Others need to be edit to question – Dheer Feb 9 '16 at 15:50

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