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SMSF Investing in India

Jan 3, 2025 | SMSF

At Samarth Capital, we specialize in investing your Self-Managed Superannuation Fund (SMSF) investments in Indian equity and bond markets while remaining compliant with all the relevant regulations. As one of the few firms with expertise in SMSF investing in India, we provide tailored advice and comprehensive administration services to help manage and optimize your SMSF.

Our Services:

  • Advice on SMSF Structure: We guide you in setting up the appropriate structure in India to ensure your investments comply with the SIS Act, meeting all the compliance and audit requirements.
  • Bank Account & Investment Account Setup: Assistance with opening bank accounts, custody account and investment account in India, which will enable investing in mutual funds in India.
  • Investment Advisory: We design an investment portfolio for you according to your retirement goals as well as risk-return profile and review it at regular intervals.
  • Tax Filing: We manage your India tax filings of SMSF.

We manage document preparation to ensure that your SMSF investments in India remain fully compliant.

Investment Structure for SMSFs in India:

Due to stricter Indian regulations, SMSFs corpus has to find a proper route to Indian markets. With the right setup, trustees can access Indian investment opportunities via SMSFs.

Key Requirements:

  • Trustees can be non-resident Indians (NRIs) or can be with other nationalities. Corporate trust structure is mandatory.
  • If 51% of more stake in SMSF is held by non-resident Indians (NRIs), then investments is allowed only in Mutual Funds.
  • For investing in Indian Mutual Funds, trustees should:
    • Obtain PAN of SMSF
    • Obtain registration from SEBI (Securities and Exchange Board of India) which is a regulatory body in India.
    • Open US$ and INR denominated bank accounts in India.
    • Open custody account of SMSF.
    • Use platforms like Samarth Capital for buying and selling mutual fund units.
    • Understand tax implications related to investing in Indian Mutual Fund.

Tax Implications of Indian Investments:

Profits generated from Indian investments will be taxed in India. Both after-tax profits and invested capital can be transferred back to the Australian SMSF account or remain in India for future investments.

Taxes paid in India may qualify for foreign tax credits in Australia, reducing the tax payable on the same income. We will assist in preparing the reports to ensure the income is correctly reported under the SMSF, thereby avoiding personal tax obligations in Australia.

We will also assist in filing tax returns in India.
 

For more details and clear your doubt, Please Call or WhatsApp on +91 98203 31713