International Buying individual Indian stocks from Australia

Discussion in 'Shares & Funds' started by ms420, 13th Mar, 2019.

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  1. ms420

    ms420 Well-Known Member

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    Hi all,

    So far from google searches I can see platforms like CommSec and CMC do not facilitate buying Indian stocks. They do however support buying funds investing in India.

    I am an Indian citizen who will shortly become an Aussie citizen. I would like to invest in the Indian stock market and buy individual stocks going forward. Are you able to suggest any websites or modes through which I can do this stock investing? Also, are you aware of double taxation or other considerations?

    Thanks.
     
  2. The Falcon

    The Falcon Well-Known Member

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    Look at Saxo markets perhaps. I have been looking at something on the Johnanesburg exchange and they look to be the only local option. Alternatively, you could use a broker in India.
     
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  3. orangestreet

    orangestreet Well-Known Member

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    I would find a full service broker in India and arrange for money transfers as and when funds are available with the instruction to buy according to an agreed plan. I know friends and family who do this but they live in India. But no reason why it cannot be done from overseas.

    I am sure I don't need to remind you to be careful about who you trust:D. But you could go with a broker that you (or people known to you) trust and it might work OK.

    There must be thousands (if not more) of Non Resident Indians (NRIs) who would be doing exactly this.

    Not advice.
     
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  4. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    If you are a resident AU taxpayer you will pay AU tax on the income here. Credit may be given for Indian withholding tax or income tax on the same income. You will also need to convert income / gains etc using exchange rates even if the funds stay in India. The ATO publish exchange rates for India/AUD which can assist.

    And shares you hold in India become taxable CGT assets on the date you arrive

    How will you manage exchange rate risks ?? India and AU have a two-way data sharing agreement.

    https://www.quora.com/Which-is-the-best-broker-in-India
     
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  5. geoffw

    geoffw Moderator Staff Member

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    If you pay tax in India you will also pay tax here. You get credit here for the tax you pay in India - but if you pay more tax in I día than here, you won't get any back.

    I gather that the capital gains tax (CGT) is much lower in India than here. But here, it depends on your income, it's not just a tax on the profit. If you've held shares for more than a year, and you make a profit when you sell, you have to add 50% of the profit to your taxable income. There's no indexation.
     
  6. ms420

    ms420 Well-Known Member

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    Checked. Doesn’t support India
     
  7. ms420

    ms420 Well-Known Member

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    Thanks all for the tax considerations comments. I checked google/ Indian stock exchange websites and there is a cumbersome process to do it. The value of doing so and having to deal with double taxation has to considered into the efforts put into investing there.

    There is of course the mutual fund route like Fidelity but they mostly invest in the top companies with lower risk profile. However investing via mutual funds could reduce the overheads of direct investing and also potential changes in SEBI rules.

    I will continue to explore this space and appreciate any additional comments. I am looking for 15-20% annual returns and not keen on OZ property :)