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What does an Indian investment actually leave me with?
Banks quote the gross rate. As a UAE NRI you also lose Indian tax, tax where you live on the same income, and the cost of converting rupees back. This ranks the common options on what is left.
= ₹15 Lakh
Best of these, after everything
Indian Equity Mutual Fund
₹15,00,000 over 5 years leaves you ₹9,55,564, which is 10.4% a year after tax and conversion. The worst option on this list leaves ₹5,86,291 less.
| Where the money sits | Gross | Indian tax | Tax at home | Conversion | You keep |
|---|---|---|---|---|---|
Equity MFBestdomestic rate Long-term equity mutual fund. LTCG taxed at 12.5% above ₹1.25L exemption (post Finance Act 2024). | ₹11,43,513 | -₹1,42,939 | nil | -₹45,010 | ₹9,55,564 10.4% a year |
SGBexempt in India Government gold bond bought on the secondary market. Held-to-maturity returns tax-free; coupon taxable. | ₹7,55,485 | nil | nil | -₹40,599 | ₹7,14,886 8.1% a year |
NRE FDexempt in India Rupee-denominated FD funded from foreign earnings. Interest tax-free in India under Section 10(4)(ii). | ₹6,03,828 | nil | nil | -₹37,869 | ₹5,65,959 6.6% a year |
NRO FDtreaty rate Rupee FD for Indian-sourced income. Default 30% TDS on interest, reducible via DTAA. | ₹6,23,563 | -₹76,558 | nil | -₹36,846 | ₹5,10,159 6.0% a year |
GIFT USD FDexempt in India USD deposit via IFSC banking unit in GIFT City. Treated as offshore under FEMA, no Indian tax, no TDS. | ₹4,60,440 | nil | nil | nil | ₹4,60,440 5.5% a year |
Debt MFdomestic rate Indian debt fund (post 1 Apr 2023 acquisition). Section 50AA: gains deemed STCG at slab rate regardless of holding period; no indexation, no LTCG path. | ₹6,53,444 | -₹1,87,424 | nil | -₹35,388 | ₹4,30,632 5.2% a year |
FCNR FDexempt in India Foreign-currency FD (USD/GBP/EUR). Interest tax-free in India, no INR depreciation risk. | ₹3,69,273 | nil | nil | nil | ₹3,69,273 4.5% a year |
How Equity MF gets to ₹9,55,564
- The India-UAE treaty does not lower the rate on this income, so the 12.5% domestic rate applies.
- Growth is taxed once, when you sell, so the money compounds untaxed until then.
- UAE does not tax this income, so nothing is payable there.
- Sending it home costs about 1.8% in spread and charges on the whole amount. A specialist transfer service is usually cheaper than a bank.
A CA confirms the rates for your country, checks your TRC is current, and puts the money where this table says it should go.
Have a CA check this planWhat to do with this number
Why NRE and FCNR beat NRO on tax
Interest on both is exempt in India while you are non-resident; NRO interest is not.
Which account this money can go into
Where the money comes from decides the account, and the account decides the tax.
GIFT City dollar deposits
Foreign-currency deposits treated as offshore, usually at a better rate than FCNR.
How this is worked out
- Returns are the typical rates shown for each product, compounded. They are not a forecast; equity in particular can do anything.
- Interest is taxed in the year it is credited and the tool reinvests what is left; growth in an equity fund is taxed once, when you sell.
- Indian tax: the treaty rate where your country's treaty lowers it and you hold a TRC and Form 41 (formerly Form 10F), otherwise the domestic rate. Surcharge and cess are not layered on here, so the Indian tax shown is slightly light for large amounts.
- Tax where you live: the rate you set above (0%), applied to the same income with credit for the Indian tax already paid. The starting figure of 0% for UAE is a rough middle rate, not your rate.
- Converting rupees home costs about 1.8% in spread and charges; a specialist transfer service is usually cheaper than a bank. Foreign-currency deposits skip this.
- Products an NRI cannot legally hold, such as the RBI Floating Rate Savings Bond, are left out of the ranking.
Checked against the Income-tax Act and Rules on 10 September 2026. An estimate, not advice: your return decides.