Ch.9 · Systematic Transactions — SIP, SWP, STP · medium

For an NRI investor, redemption proceeds from an NRE account investment in a mutual fund can:

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EXPLANATION

Investments made through an NRE (Non-Resident External) account are freely repatriable. Both the principal and capital gains can be sent abroad after applicable TDS deduction.

A.Only be credited to an NRO account

B.Be freely repatriated abroad along with capital gains [✓ Correct]

C.Be repatriated only after paying 30% TDS on the full redemption amount

D.Only be reinvested in Indian government securities

EXPLANATION

Investments made through an NRE (Non-Resident External) account are freely repatriable. Both the principal and capital gains can be sent abroad after applicable TDS deduction.

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