NRI Investing Guide 2026: How to Invest in India and Globally

To invest in Indian stocks directly, NRIs must open a PIS (Portfolio Investment Scheme) account with a designated bank (ICICI, HDFC, Kotak, etc.) linked to an NRE or NRO account. The PIS account requires RBI approval (handled by the bank). You then link this PIS account to a demat account with a stockbroker (Zerodha, ICICI Direct, Kotak Securities).

NRIs can invest in Indian mutual funds directly using an NRE or NRO bank account. Most fund houses accept NRI applications online through their portals or via platforms like MFCentral. US and Canada-based NRIs face additional compliance issues: many Indian AMCs have stopped accepting investments from US/Canada-based NRIs due to FATCA/CRS compliance costs. Check with the specific fund house before applying.

NRIs are not subject to LRS for investments made from their foreign income in their country of residence — LRS only applies to Indian residents remitting from India. However, if you remit funds from an Indian NRO account abroad to invest, that does come under RBI's repatriation rules ($1M/year).

NRIs are taxed in India only on India-sourced income. The tax rates depend on the type of income and the account it's held in:

• NRE account interest: zero tax in India. Fully tax-free for Indian purposes (though it may be taxable in your country of residence).
• NRO account interest: 30% TDS at source (deducted by bank). Claim treaty reduction by submitting Form 15G/15H or a DTAA claim through your bank.
• Equity mutual fund gains (12+ months): 12.5% LTCG above ₹1.25 lakh/year exemption. Short-term: 20% STCG.
• Property rental income in India: taxable as NRO income. TDS deducted by tenant at 30%. File ITR to potentially reclaim excess TDS.
• Property sale capital gains: 12.5% LTCG (above 24 months). TDS at 20% on gross sale proceeds by buyer. File ITR and apply for a lower TDS certificate if actual gain is much less.

• Update your residential status with your Indian bank each year — banks require annual declaration for NRE/NRO accounts.
• File Indian ITR by July 31 if India-sourced income exceeds the basic exemption limit (₹3 lakh under new regime).
• Claim TDS refunds: if excess TDS was deducted on NRO interest or dividends, file ITR to receive the refund.
• FEMA compliance: NRIs cannot have resident savings accounts — ensure your accounts are correctly classified as NRE or NRO.
• Global asset reporting: many NRI residence countries (US, UK, Canada, Australia) require reporting of foreign financial accounts. FBAR (FinCEN 114) for US persons; FATCA reporting; Australian FCC Form.
• PMS/AIF access: some premium investment products require you to be classified correctly as an NRI or FOII (Foreign Institutional Investor) at your custodian.

• Zerodha: the largest Indian discount broker. Accepts NRI accounts with PIS linkage. Online onboarding available. Lowest brokerage (₹20/trade flat or 0.1% equity delivery).
• ICICI Direct: full-service broker with strong NRI client base. Higher brokerage but better customer support for international clients.
• INDmoney: fintech that allows NRI investment in Indian mutual funds and US stocks from a single platform. Growing popularity.
• HDFC Securities / Kotak Securities: established bank-backed brokers with NRI-specific account types.
• Kuvera / Groww: mutual-fund-first platforms. Growing NRI support. Check whether US/Canada NRIs are accepted.

The NRI investing landscape has improved significantly in 2024–2026, with several platforms improving their LRS onboarding and FX processes. Here's a current comparison of the most relevant options:

• Interactive Brokers (IBKR): best overall for NRIs with a long-term global portfolio. 0.1% FX cost, access to LSE-listed UCITS ETFs, US stocks, Indian markets via IBKR India. LRS onboarding takes 1–2 weeks. Recommended for portfolios > ₹5 lakh/year.
• Vested Finance: India-focused platform for buying US stocks. Lower barrier to entry, simpler interface. FX costs approximately 1–1.5% (charged by bank + platform). Good for beginners with smaller amounts.
• INDmoney: similar to Vested, India-focused US stocks platform. Convenient but FX costs embedded. Comparable to Vested for small investors.
• Groww (international): Groww has expanded international investing features. Convenient for users already on Groww. FX costs not fully transparent — check before large purchases.
• HDFC Securities Global: for NRIs with HDFC relationships. Higher FX costs but integrated with existing HDFC banking. Suited to investors who prioritize banking relationship over cost.

The LRS framework has seen several updates in recent years. The 2023 TCS increase (from 5% to 20% on LRS above ₹7 lakh) was the most significant. Understanding the current state avoids costly surprises.

• TCS rate: 20% on LRS remittances above ₹7 lakh per financial year (effective October 2023). Below ₹7 lakh: 5% TCS for non-education/medical purposes. TCS is fully refundable via ITR — it's an advance tax collection, not an additional cost.
• Form 15CA/15CB: required for remittances above ₹5 lakh under LRS where the purpose code is for investment. Banks often handle Form 15CA filing; Form 15CB requires a Chartered Accountant sign-off.
• Bank-wise LRS tracking: each bank tracks your LRS separately. Aggregate $250,000 limit is personal — if you use multiple banks, ensure combined LRS doesn't exceed the limit. Banks report to RBI but don't automatically share data with each other.
• Education remittances: education-related LRS (tuition fees) has lower TCS (0.5% with bank loan, 5% without) and is not counted in the investment LRS limit — it's a separate permitted category.
• RBI annual limit: remains $250,000 per financial year. This covers all LRS purposes combined — education, tourism, maintenance of close relatives, investment. Not just investment.

• □ Confirm NRI status for FY 2025-26 (India days below 182)
• □ Check LRS remittances made in FY — ensure within $250,000 limit
• □ Verify W-8BEN on IBKR is current (expires every 3 years)
• □ Download IBKR Annual Activity Statement for ITR filing
• □ File Indian ITR-2 by July 31 2026 (Schedule FA, FSI, CG mandatory)
• □ Claim TCS credit in ITR-2 — check Form 26AS for amounts collected
• □ Rebalance portfolio if any asset class has drifted > 5% from target
• □ Review NRE/NRO FD rates — compare against IBKR money market rates
• □ Check that all accounts have current nominee/beneficiary designations
• □ Review ETF holdings — confirm all are UCITS-domiciled to avoid US estate tax

• Q: What is the best investment platform for NRIs in 2026? A: For global ETF investing: Interactive Brokers (IBKR) — lowest FX costs (0.1%), global market access including UCITS ETFs, SEBI-approved for Indian residents. For India-specific mutual funds: Parag Parikh/PPFAS Mutual Fund (accepts all NRIs including US/Canada).
• Q: What is the LRS limit in 2026? A: $250,000 per financial year per individual, unchanged from previous years. Both spouses can each remit $250,000, doubling the household limit. TCS: 20% on amounts above ₹7 lakh.
• Q: Are NRIs allowed to invest in Indian stocks? A: Yes, under the Portfolio Investment Scheme (PIS) via an NRE or NRO account linked to a SEBI-registered broker. PIS is a one-time registration with your Indian bank. Aggregate NRI investment in a single Indian company is capped at 10% of paid-up capital.
• Q: What is the SNRR account and when do NRIs need it? A: Special Non-Resident Rupee Account — used for specific business transactions (joint ventures, technical collaborations, etc.). Individual NRI investors don't need SNRR accounts. NRE and NRO cover all standard investment and income needs.
• Q: Can NRIs gift money to resident Indian parents? A: Yes. NRIs can gift money to close relatives (parents, siblings, spouse) in India. Gift via NRE account is cleanest — fully repatriable if recipient is another NRI; if recipient is resident Indian, funds go to their NRO account. Gift tax: gifts to close relatives are exempt from tax in India regardless of amount.