Investing in India

We specialize in ensuring the compliance of your Self-Managed Superannuation Fund (SMSF) investments in India. We are one of the few SMSF firms that can provide specialist advice and administration services for Indian investments in an SMSF.

Our offerings:

• Advice on structure setup to make sure your Indian investments to align with the SIS Act and meet compliance and audit requirements.
• Assistance with opening bank accounts and Indian investment accounts, such as mutual funds.
• SMSF administration, including year-end financial reporting, tax return preparation, and facilitation of external audits.
• Preparation of any necessary trust documents to establish SMSF ownership of Indian investments, ensuring compliance with SMSF audit requirements.
• Calculating the right tax position using the Double Tax Avoidance Agreement (DTAA).

We handle both the structural aspects and document preparation to ensure the compliance needs for an SMSF with Indian investments are fully met.

Investment Structure Requirements: 

SMSFs cannot directly invest in India due to regulations set by the Indian government. To explore investment opportunities in India through a Self-Managed Superannuation Fund (SMSF), trustees need to be recognized as Overseas Citizens of India.

For those interested in Indian investments, trustees must obtain Indian Tax Identifier numbers, known as PAN (similar to the Australian TFN), and establish Non-Resident External Bank accounts.

For example, if thinking about investing in Indian Mutual Funds, trustees should:

1. Check that the mutual funds are regulated by SEBI (Securities and Exchange Board of India) – SEBI Website.
2. Use online platforms like Kuvera – Kuvera Website – for buying and selling units.
3. Consider specific mutual funds like Example Fund, holding shares in both Indian and USA stock exchanges.

In India, separate bank and portfolio accounts will be maintained in the trustees’ names for easy tracking and accounting of SMSF investments. These accounts must be opened after the SMSF is established; you cannot use your previous bank and investment accounts. Once these accounts are opened, please provide us with all the account details so that we can send you the trust documents for signing. We will help you create the legal documents to include all the Indian investments in the declaration to comply with the audit and compliance requirements.

When purchasing and holding mutual fund units or shares in India, trustees should follow our guidelines to maintain compliance requirements for the Indian investments. We will provide step-by-step instructions after the SMSF is established.

Tax Implications

Any profits made on your Indian investments will be taxed in India. Both after-tax profits and invested capital can be transferred back to the Australian SMSF bank account or kept in India for future investments within the SMSF. Trustees needs to fulfill all investing and tax responsibilities in India related to their SMSF investments.

Any taxes paid in India can be used as foreign tax credits to reduce the tax payable on that income in Australia. We will prepare the reports and documents to separate this income from your personal income in India, allowing it to be reported in your SMSF and thereby avoiding taxation in your personal name in Australia.

Please note that the advice on this page is general. We highly recommend seeking professional advice before making any decisions based on the information provided here.