IndiaFundSearch
Sheet 05 — Corridors

The same fund, three countries,
three different answers.

Indian regulation barely distinguishes between one non-resident investor and another. Your country of residence does. The same fund can be a sensible holding in Dubai, a reporting headache in London and a real tax trap in New Jersey. Nothing on the factsheet tells you which one you are looking at.

These three guides start from where you file your taxes, not from the product shelf. Each is written against the rules that actually govern you, published by the IRS, HMRC and the UAE Federal Tax Authority. Where the law is unsettled, we say so instead of rounding it off into a confident answer.

By Yash Jhaveri, Founder & CEO, Beyond

Beyond · JSL Wealth Management · Vadodara · ARN XXXXX
Last reviewed September 2026 · Regulatory position as at September 2026

Corridor US

NRIs in United States

The fund your cousin in Pune swears by can be a tax trap for you, and one that never closes.

  • Who this catches — US tax residents — green card or substantial presence
  • Indian-side restriction — None — SEBI and IFSCA impose no residency bar
  • Real restriction — US securities law and the PFIC regime
Read the US guide →
Corridor UAE

NRIs in United Arab Emirates

Your zero is real. It is also conditional, still being argued in court, and easy to lose by accident.

  • UAE tax on your investment income — None — personal investment income is outside corporate tax
  • Indian-side restriction — None — SEBI and IFSCA impose no residency bar
  • What the treaty position needs — A UAE residency certificate, plus the Indian form
Read the UAE guide →
Corridor UK

NRIs in United Kingdom

Your Indian fund is probably taxed as income at 45% instead of as a gain at 24%, and the loss relief never comes back.

  • Decisive question — Does your share class hold HMRC reporting fund status?
  • If it does not — Profit taxed as income, up to 45%, no annual exempt amount
  • If it does — Capital gains treatment — plus annual tax on excess reported income
Read the UK guide →
What is the same everywhere

India does not restrict you

Portfolio management regulations carry no residency condition at all, and the AIF regulations expressly permit foreign and non-resident investors. Where a house declines you, that is its own commercial decision, usually driven by your country's rules, not India's.

The structure decides the tax

A managed account holding shares in your own name and a fund issuing you units are treated very differently in all three corridors, sometimes as the difference between a capital gain and income. It is the first question to ask, not the last.

Indian law changed underneath everyone

India replaced its entire income tax statute on 1 April 2026. Any page quoting the old section numbers is quoting a repealed Act, so we describe Indian rules by what they do and cite numbers only where they are stable.

The GIFT City shelf →Tax schedule (Resident / NRI) →All thirteen structures →
Straight answers for NRIs
Can an NRI invest in PMS?No SEBI residency bar; the ₹50 lakh minimum appliesCan an NRI invest in an AIF?Expressly permitted; the work is the FEMA routeNRE vs NRO accountWhich one your investments should run throughNRI repatriation limitThe US $1 million rule, and when it does not applyForm 10F, now Form 41How to file without a PAN, and without a DSCTax residency certificate, UAEThe 183-day calendar-year test India appliesAre Indian mutual funds PFICs?For a US taxpayer, almost always yesHMRC reporting fund statusWhich Indian funds hold it, and why 24% or 45%Which AMCs accept US NRIs?Why most decline, and what to ask insteadUS and Canadian NRIs: PFIC, FATCA and FBARRead this before you shortlist anything

Education, not advice. We may earn referral fees when you invest through us. Full disclosures