SIP calculator for NRIs in India?
SBNRI Team
answered on 21/03/2023
A SIP or Systematic Investment Plan is a payment of a fixed amount made at regular intervals for any investment opportunity such as Mutual Funds, trading accounts etc.
SIP calculator for NRI
To calculate the returns on SIP for your mutual fund investments you need the following data:
- Monthly Investment Amount
- Percentage of Returns
- Investment Period
There are various websites where you can enter these information and know about the returns on your SIP investments. SBNRI can help you in calculating your returns on your SIP investments.
Is SIP Tax-Free in India?
SIP is not tax free for NRIs. Different types of Mutual Funds are taxed differently:
*(Equity Funds: An equity fund is a mutual fund that invests principally in stocks)
*(Debt Funds: A debt fund is a mutual fund that invests in fixed-interest generating securities such as corporate bonds, government securities)
Nature of Profits / Income | Equity Funds* | Debt Funds* |
| Minimum Holding period for Long term capital gains | 1 year | 3 years |
Short term capital gains taxation | 15% + 4% cess* = 15.60% | As per the tax rate of the investor (30% + 4% cess = 31.20% for investors in the highest tax slab) |
| Long term capital gains taxation | 10% + 4% cess = 10.40% (if the long term gain exceeds Rs 1 Lakh) (long term gains up to Rs 1 Lakh is tax-free) | 20% with indexation* |
*(Cess: A cess is a tax on tax that you pay to the government for purposes set by the government. The cess is charged till the objective set by the government is fulfilled. Eg: Krishi Kalyan Cess, Swachh Bharat Cess etc.)
*(Indexation: Indexation refers to the technique of adjusting income payments using a price index to maintain the purchasing power of the public after inflation)
However, you can later claim for a tax refund according to your tax slab.
Income Tax Slab | Tax Rate |
| Up to 2.5 Lakhs | Nil |
2.5 Lakhs to 5 Lakhs | 5% |
| 5 Lakhs to 7.5 Lakhs | 10% |
7.5 Lakhs to 10 Lakhs | 15% |
| 10 Lakhs to 12.5 Lakhs | 20% |
12.5 Lakhs to 15 Lakhs | 25% |
| 15 Lakhs and above | 30% |
Note: NRIs need not pay double taxes. There is a provision called DTAA (Double Taxation Avoidance Treaty). If the DTAA is signed between India and the country of residence of the NRI, the NRI will not be paying double taxes on the same source of income. NRIs will however need to pay differential taxes. (For example: If for a certain investment, taxes are 30% in India and 40% in the USA, NRIs from the USA need to pay the remaining 10% to US.)
India has signed DTAA with more than 85+ countries all around the globe including USA, UK, Saudi Arabia and UAE. You can check the list of the countries and find additional information regarding DTAA here.
For more queries like “SIP calculator for NRI”, click here.
To get expert advisory on SIP for NRI from SBNRI, contact us using the button below.
Ask SBNRI Investment Expert Now
Related Questions
SBNRI Team
answered on 01/03/2023
Online Mutual Fund KYC for NRI is a seamless online process through which NRIs can easily complete their KYC requirements for Mutual Funds by submitting the documents online and verifying them through In-Person Verification (IPV). Mutual Fund KYC through SBNRI App NRIs/ OCIs can download the SBNRI app to complete the KYC process seamlessly and […]
SBNRI Team
answered on 30/03/2020
Taxation on Mutual Funds for NRI: Different types of Mutual Funds are taxed differently *(Equity Funds: An equity fund is a mutual fund that invests principally in stocks) *(Debt Funds: A debt fund is a mutual fund that invests in fixed-interest generating securities such as corporate bonds, government securities) Nature of Profits […]
SBNRI Team
answered on 30/03/2020
Here is a checklist of the Mutual Fund Documents for NRI from US/UK/Middle-East 2020: KYC Form (filled and signed) Recent color photo (signed across the photo) Copy of PAN Card, notarized (On an A4 size paper) Copy of exact proof of overseas address, notarized (On an A4 size paper) Copy of first and last pages […]
SBNRI Team
answered on 07/09/2023
Yes, Non-Resident Indians (NRI) can invest in mutual funds from their NRE (Non-Resident External) bank account. NRE accounts are rupee-denominated, so NRIs can deposit and maintain his/her foreign earnings in India in rupees. NRIs can open an NRE account in the form of savings or a current bank account and invest in mutual funds via […]
