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What is Repatriation Rights?

The investment made by the NRIs, when sold, can be converted in US $, British Pounds or any major currency of their choice after deduction of 10% (if investment is held over 366 days) or 20% tax (if the investment is held less then a 365 days). PROVIDED the initial amount of the investment was though the NRE account maintained in India or through foreign exchange remittance.

How One Can Invest With Repatriaion Rights?

  1. When the NRI invests through the IPO (Initial Public Offering) in which the RBI has allowed the company to offer the Shares/Debentures with repatriation rights.
  2. OR

  3. Purchases the shares through a recognized stock exchange, after obtaining a general permission from the RBI.

Earning On Your Investment.

During the time of holding your repatriable investment, the dividend paid by the company is tax free and remitted without any deduction of tax in India.

The 20% tax is deducted on the interest paid on the Debentures/bonds.