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Nri Parent Indian Fema Pis Portfolio Investment Scheme Rbi...

Complete 2026 guide for NRI / OCI senior parents doing Indian equity direct investment through FEMA PIS (Portfolio Investment Scheme) per RBI Schedule 3 FEMA 1999 +...

Updated 29 Jun 2026|32 min read
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NRI parent senior 60+ Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment + NRE brokerage account + NRO brokerage account + designated bank + AD-1 bank + Section 112 LTCG 20% + Section 112A LTCG 10% + Section 111A STCG 15% + STT paid + Section 45 transfer + Section 48 computation + Section 50C(1) stamp duty + Section 194N cash withdrawal + Section 54F residential house + Section 56(2)(vii) heir FULL EXEMPT + Section 56(2)(xi) deemed gift + FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 + FEMA compounding penalty up to 3x per FEMA 1999 Section 13 + Section 195 NRI TDS + Section 197A lower TDS + DTAA Article 13 + Form 67 mandatory + Section 90(4) 8-year TRC retention + Black Money Act 2015 + Form 3520 + Form 3520-A + Form 8938 FATCA + FBAR FinCEN 114 + FEMA NRO 7y + 10y retention + FEMA compounding + senior 60+ parent estate India 2026.

Critical: Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment held by NRI / OCI senior 60+ parent — Section 112 + 112A + 111A + STT + Section 54F + Section 56(2)(vii) heir FULL EXEMPT + FEMA USD 1M / year + Form 8938 FATCA

Indian FEMA PIS (Portfolio Investment Scheme) per RBI Schedule 3 FEMA 1999 + RBI Master Direction 2024 for NRI / OCI senior 60+ parent equity direct investment in Indian listed equity + NRE brokerage account + NRO brokerage account + designated bank per RBI PIS guidelines + AD-1 bank + Section 112 LTCG 20% (Indexation Section 48(ii) CII 2001 base debated) + Section 112A LTCG 10% (listed post-2018 + > 12 months + > INR 1 lakh aggregate + 4% cess) + Section 111A STCG 15% (listed equity + STT paid + held < 12 months + 4% cess) + Section 45 transfer + Section 48 computation + Section 50C(1) stamp duty value NOT applicable for equity (debated) + Section 194N cash withdrawal + Section 80C + Section 54F residential house full LTCG exemption + Section 56(2)(vii) heir FULL EXEMPT specified relative + Section 56(2)(xi) deemed gift > INR 50,000 + FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 + FEMA compounding penalty up to 3x per FEMA 1999 Section 13 + PFIC Form 8621 (Indian equity is NOT foreign mutual fund per Section 1297(e) typically NOT PFIC for US tax debated for equity held through foreign trust structure) + Black Money Act 2015 + Form 3520 + Form 3520-A + Form 8938 FATCA + FBAR FinCEN 114 + Section 6662 20-40% accuracy + Section 6663 75% fraud + FEMA NRO 7-year retention debated + 10-year US/UK/CA/AU retention debated + senior 60+ parent estate India 2026.

NRI parent Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment + NRE brokerage account + Section 112 + 112A + 111A + Section 54F + FEMA USD 1M / year + senior 60+ parent estate India 2026

NRI parent senior 60+ Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 + equity direct investment + NRE brokerage account + Section 112 + 112A + 111A + Section 54F + FEMA USD 1M / year + senior 60+ parent estate India 2026

Indian FEMA PIS held by NRI / OCI senior 60+ parent — RBI Schedule 3 FEMA 1999 + NRE brokerage account + Section 112 + 112A + 111A + Section 54F + FEMA USD 1M / year

Indian FEMA PIS (Portfolio Investment Scheme) per RBI Schedule 3 FEMA 1999 + RBI Master Direction 2024 for NRI / OCI senior 60+ parent equity direct investment in Indian listed equity on Indian stock exchange (BSE + NSE) — FEMA PIS route is the ONLY route for NRI / OCI to do equity direct investment in India per RBI Schedule 3 FEMA 1999 + RBI Master Direction 2024 + NRI / OCI cannot invest in Indian listed equity through general LRS route per FEMA 1999 + RBI Master Direction 2024 (debated for debt PMS / AIF typically mandatory for equity). NRI / OCI senior 60+ parent opens NRE brokerage account (for repatriable investment) + NRO brokerage account (for non-repatriable investment) per RBI PIS guidelines + designated bank AD-1 for fund remittance + remits funds per FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 bank + FEMA compliance certificate from CA + Form 15CB (CA certificate) + Form 15CA (declarant statement) per FEMA PIS guidelines + RBI Master Direction 2024. SEBI registered broker + NSDL + CDSL depository + DP ID + BO ID + ISIN + delivery vs payment + settlement cycle T+1 + STT paid per Section 35AD per equity purchase + equity sale per Section 35AD.

Section 112 LTCG 20% (listed equity held > 12 months + Indexation Section 48(ii) CII 2001 base debated) + 4% cess + Section 112A LTCG 10% (listed equity post-2018 + > 12 months + > INR 1 lakh aggregate + STT paid) + 4% cess + Section 111A STCG 15% (listed equity + STT paid + held < 12 months) + 4% cess + Section 45 transfer + Section 48 computation = sale consideration - cost of acquisition - cost of improvement - transfer expenses per Income Tax Act 1961. Section 50C(1) stamp duty value deemed sale consideration NOT applicable for FEMA PIS equity per Section 50C(1) explicit text 'land or building or both' — Section 50C applies to immovable property only per Section 50C(1) plain text. Section 194N cash withdrawal 10 lakh per FY TDS 2% + 5% per Section 194N + Section 194IA 1% TDS NOT applicable for equity (debated). Section 80C deduction INR 1.5 lakh per Section 80CCE — equity direct investment typically NOT eligible for Section 80C deduction (Section 80C applies to PPF + ELSS + NSC + KVP + ULIP + housing loan principal + tuition fees + life insurance premium). Section 54F residential house full LTCG exemption per Section 54F(1) — if all sale proceeds reinvested in new residential house within 2 years before or 1 year after sale OR construction within 3 years.

Section 56(2)(vii) heir FULL EXEMPT specified relative for FEMA PIS equity inheritance — NRI / OCI heir receiving FEMA PIS equity from deceased parent FULL EXEMPT (debated for monetary receipt per CBDT Circular 6/2016 + 24/2016 narrow reading typically FULL EXEMPT under broader reading; consult CA). Section 56(2)(xi) deemed gift > INR 50,000 non-specified relative. FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 + FEMA compliance certificate from CA + Form 15CB + Form 15CA + 26Q + 27Q TDS return verification + Section 195 NRI TDS at applicable rate + Section 197A lower TDS certificate from AO per Section 197 + Form 13 + DTAA rate + Form 67 mandatory per CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules + Section 90(4) 8-year TRC retention + Form 10F per Income Tax Rules 1962 Rule 21AB. Section 194IA 1% TDS on immovable property transfer > INR 50 lakh per Section 194IA(1) NOT applicable for FEMA PIS equity.

FEMA compounding penalty up to 3x per FEMA 1999 Section 13 for non-compliance — FEMA compounding application to RBI ED per FEMA 1999 Section 13(1) + FEMA compounding order per FEMA 1999 Section 13(2) + FEMA compounding circular FEMA 2017 + FEMA compounding rate per FEMA compounding master direction + FEMA compounding penalty up to 3x of the amount involved. 7-year NRO retention for FEMA PIS equity held in NRO brokerage account per RBI Circular 47/2015 + 12/2015 + FEMA 1999 + RBI Master Direction 2024 debated for FEMA PIS equity held in NRE brokerage account (typically NOT applicable for FEMA PIS equity held through NRE brokerage account; consult FEMA consultant). Form 8938 FATCA filing if foreign FEMA PIS equity held abroad > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ). FBAR FinCEN 114 filing if foreign account (Indian bank account + Indian demat account + FEMA PIS equity held abroad + Indian brokerage account) aggregate > USD 10K. Black Money Act 2015 + Form 3520 + Form 3520-A + Section 6048 reporting for foreign trust distribution / ownership if FEMA PIS equity held through foreign trust structure. Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty + Section 6501(c)(8) 6-year statute of limitations on omission of foreign asset + FEMA NRO 7-year retention + 10-year US/UK/CA/AU retention debated + senior 60+ parent estate.

Tax classification of NRI parent Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 + equity direct investment + NRE brokerage account + Section 112 + 112A + 111A + Section 54F + FEMA USD 1M / year + DTAA + senior 60+ parent estate India 2026

Tax classification of NRI parent Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 + equity direct investment + NRE brokerage account + Section 112 + 112A + 111A + Section 54F + FEMA USD 1M / year + DTAA + senior 60+ parent estate India 2026.

Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment — 10 steps for NRI / OCI senior 60+ parent

Step 1

Step 1 — Confirm NRI / OCI status + FEMA eligibility for equity direct investment under FEMA PIS route per RBI Schedule 3 FEMA 1999 + RBI Master Direction 2024

Confirm NRI / OCI status per FEMA 1999 Section 2(w) (NRI means a person resident outside India who is a citizen of India or is a person of Indian origin) + OCI per Citizenship Act 1955 Section 7A (Overseas Citizen of India) + FEMA 1999 Section 2(xv) (OCI cardholder deemed NRI for FEMA purposes per FEMA Notification FEMA 5(R)/2017 + RBI AP DIR Circular 04/2018). NRI / OCI senior 60+ parent must invest in Indian listed equity through FEMA PIS route per RBI Schedule 3 FEMA 1999 + RBI Master Direction 2024 — NOT through general LRS route per FEMA 1999 + RBI Master Direction 2024 (debated for debt PMS / AIF typically mandatory for equity). Indian citizen resident in India per FEMA 1999 Section 2(v) — invests through regular brokerage account + PAN + Aadhaar (debated for senior 60+ parent). PIO (Person of Indian Origin) per FEMA 1999 Section 2(xii) treated as NRI per FEMA 1999 Schedule 3 + RBI Master Direction 2024.

Step 2

Step 2 — Open NRE / NRO bank account + NRE / NRO brokerage account + demat account + designate bank AD-1 for FEMA PIS equity direct investment

Open NRE bank account (for repatriable funds) + NRO bank account (for non-repatriable funds) at designated bank per RBI PIS guidelines + AD-1 bank. Designated bank per RBI PIS guidelines + AD-1 bank means an authorized dealer bank per FEMA 1999 Section 2(b) + RBI AD license — typically large public / private sector banks (SBI + HDFC + ICICI + Axis + Kotak + Yes Bank + Federal Bank + IndusInd Bank + HSBC India + Standard Chartered India + Citibank India + Deutsche Bank India + Barclays India). NRI / OCI senior 60+ parent submits PIS application to designated bank + opens NRE brokerage account (for repatriable FEMA PIS equity) + NRO brokerage account (for non-repatriable FEMA PIS equity) + NSDL / CDSL demat account + DP ID + BO ID + ISIN + FEMA compliance certificate from CA + PAN (mandatory for FEMA PIS equity) + Aadhaar (debated for NRI / OCI — typically NOT mandatory for FEMA PIS equity; consult FEMA consultant) + Indian OCI card / Indian passport + FEMA PIS permission letter from designated bank AD-1.

Step 3

Step 3 — Remit funds per FEMA USD 1M / year LRS + Form A2 + AD-1 + FEMA compliance certificate from CA + Form 15CB + Form 15CA

NRI / OCI senior 60+ parent remits funds per FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 bank + FEMA compliance certificate from CA + Form 15CB (CA certificate confirming remittance is in compliance with FEMA 1999 + Income Tax Act 1961 + RBI Master Direction 2024) + Form 15CA (declarant statement) + 26Q + 27Q TDS return verification. NRI / OCI senior 60+ parent typically uses NRE bank account for FEMA PIS equity (repatriable) + NRO bank account for FEMA PIS equity (non-repatriable). FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 + FEMA prior RBI approval debated for amounts > USD 1M / year (typically NOT required for FEMA PIS equity up to USD 1M / year per FEMA 1999 + RBI Master Direction 2024) + FEMA compounding if prior RBI approval not obtained per FEMA 1999 Section 13. FEMA compounding penalty up to 3x per FEMA 1999 Section 13.

Step 4

Step 4 — Open SEBI registered broker account + NSDL / CDSL demat account + place buy order on BSE / NSE for FEMA PIS equity direct investment

Open SEBI registered broker account per SEBI (Stock Brokers and Sub-Brokers) Regulations 1992 + SEBI registered broker per SEBI Circular 2018 + FEMA PIS broker registration per RBI + NRI / OCI equity direct investment via PIS route. NSDL / CDSL demat account per Depositories Act 1996 + SEBI (Depositories and Participants) Regulations 1996 + DP ID + BO ID + ISIN + delivery vs payment + settlement cycle T+1 + STT paid per Section 35AD per equity purchase + equity sale per Section 35AD. NRI / OCI senior 60+ parent places buy order on BSE / NSE for FEMA PIS equity direct investment (listed equity per SEBI LODR + Section 2(46) listed company) + delivery vs payment + settlement cycle T+1 + STT paid. NRI / OCI senior 60+ parent cannot invest in unlisted equity through FEMA PIS route per RBI Schedule 3 FEMA 1999 + RBI Master Direction 2024 — unlisted equity investment requires FEMA FPI route per FEMA 1999 Schedule 2 + RBI FPI Master Direction 2024 (debated for proprietary investment; consult FEMA consultant).

Step 5

Step 5 — Hold FEMA PIS equity + monitor Section 112 LTCG 20% + Section 112A LTCG 10% + Section 111A STCG 15% + Section 45 transfer + Section 48 computation

Hold FEMA PIS equity in NRE / NRO demat account + monitor holding period for Section 112 LTCG 20% (> 12 months holding period) + Section 112A LTCG 10% (> 12 months holding period + listed equity + post-2018 acquisition + STT paid + aggregate LTCG > INR 1 lakh per FY) + Section 111A STCG 15% (< 12 months holding period + listed equity + STT paid). Section 45 transfer on actual sale + Section 48 computation = sale consideration - cost of acquisition - cost of improvement - transfer expenses per Income Tax Act 1961. Section 50C(1) stamp duty value NOT applicable for FEMA PIS equity per Section 50C(1) explicit text immovable property only. Section 56(2)(vii) heir FULL EXEMPT for FEMA PIS equity inheritance + Section 56(2)(xi) deemed gift > INR 50,000 non-specified relative. Section 194N cash withdrawal 10 lakh per FY TDS 2% + 5% per Section 194N for FEMA PIS equity sale proceeds parking in NRO bank account (debated for FEMA PIS equity held in NRE bank account — typically NOT applicable for FEMA PIS equity held through NRE brokerage account; consult CA).

Step 6

Step 6 — Sell FEMA PIS equity on BSE / NSE + STT paid + Section 194N cash withdrawal + Section 195 NRI TDS + Section 197A lower TDS

Sell FEMA PIS equity on BSE / NSE for FEMA PIS equity direct investment exit + STT paid per Section 35AD + Section 194N cash withdrawal 10 lakh per FY TDS 2% + 5% per Section 194N (debated for FEMA PIS equity held in NRE bank account typically NOT applicable; consult CA). Section 195 NRI TDS at applicable rate + Section 197A lower TDS certificate from AO per Section 197 + Form 13 + DTAA rate + Form 67 mandatory per CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules + Section 90(4) 8-year TRC retention + Form 10F per Income Tax Rules 1962 Rule 21AB. Section 112 LTCG 20% (listed equity held > 12 months + Indexation Section 48(ii) CII 2001 base debated) + 4% cess + Section 112A LTCG 10% (listed equity post-2018 + > 12 months + > INR 1 lakh aggregate + STT paid) + 4% cess + Section 111A STCG 15% (listed equity + STT paid + held < 12 months) + 4% cess + Section 45 transfer + Section 48 computation.

Step 7

Step 7 — Repatriate FEMA PIS equity sale proceeds per FEMA USD 1M / year LRS + Form A2 + AD-1 + FEMA compliance certificate from CA + Form 15CB + Form 15CA

Repatriate FEMA PIS equity sale proceeds per FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 bank + FEMA compliance certificate from CA + Form 15CB (CA certificate) + Form 15CA (declarant statement). FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 + FEMA prior RBI approval debated for amounts > USD 1M / year + FEMA compounding if prior RBI approval not obtained per FEMA 1999 Section 13. NRI / OCI senior 60+ parent repatriates FEMA PIS equity sale proceeds from NRE bank account to overseas bank account per FEMA USD 1M / year LRS + Form A2 + AD-1 + FEMA compliance certificate + 26Q + 27Q TDS return verification. FEMA compounding penalty up to 3x per FEMA 1999 Section 13 for non-compliance.

Step 8

Step 8 — File ITR + Section 112 LTCG + 112A LTCG + 111A STCG + Schedule 112A + Schedule FSI + Schedule TR + Schedule FA foreign asset disclosure + Form 67 mandatory

File ITR for FEMA PIS equity direct investment sale + Section 112 LTCG 20% + 4% cess + Section 112A LTCG 10% + 4% cess + Section 111A STCG 15% + 4% cess + Schedule 112A (Section 112A LTCG 10% computation) + Schedule FSI (foreign source income) + Schedule TR (DTAA tax relief) + Schedule FA (foreign asset disclosure mandatory for FEMA PIS equity held abroad) + Form 67 mandatory per CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules + Section 90(4) 8-year TRC retention + Form 10F per Income Tax Rules 1962 Rule 21AB. NRI / OCI typically uses ITR-2 or ITR-3 for FEMA PIS equity direct investment + NRI / OCI NOT eligible for ITR-1 per Rule 12(1) + ITR-4 SUGAM presumptive per Section 44AD + 44ADA + 44AE (debated for FEMA PIS equity). Section 234A + 234B + 234C interest for delayed payment of advance tax + Section 271F late filing penalty + Section 270A 50%/200% under-reporting penalty + Section 271AAB 100%/200%/300% undisclosed income penalty + Section 271AAC 50%/200%/300% penalty for undisclosed income.

Step 9

Step 9 — Senior 60+ parent estate planning for FEMA PIS equity — Will + nominee + transmission + Section 56(2)(vii) heir FULL EXEMPT + Estate Tax Treaty + Form 706 US estate tax

Senior 60+ parent estate planning for FEMA PIS equity direct investment — Will per Indian Succession Act 1925 Section 63 + 2 witnesses + codicil + executor + probate + Letters of Administration + succession certificate + Hindu Succession Act 1956 Section 6 coparcener + FEMA ED RBI Master Direction 2024 + nominee rights + FEMA PIS equity direct investment broker demat account nominee + heir transmission + Estate Tax Treaty + Gift Tax Treaty + Form 706 US estate tax (if US person) + Section 877A expatriation tax + covered expatriate. Section 56(2)(vii) heir FULL EXEMPT specified relative for FEMA PIS equity inheritance per Section 56(2)(vii)(b) Explanation — NRI / OCI heir receiving FEMA PIS equity from deceased parent FULL EXEMPT (debated for monetary receipt per CBDT Circular 6/2016 + 24/2016 narrow reading typically FULL EXEMPT under broader reading; consult CA). Section 56(2)(xi) deemed gift > INR 50,000 non-specified relative for FEMA PIS equity gift to non-specified relative.

Step 10

Step 10 — Annual compliance — FEMA USD 1M / year LRS + Form A2 + AD-1 + FEMA compounding + Schedule FA foreign asset + Form 8938 FATCA + FBAR FinCEN 114 + FEMA NRO 7y retention + 10y retention

Annual compliance for FEMA PIS equity direct investment — FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 + FEMA compounding penalty up to 3x per FEMA 1999 Section 13 + Schedule FA foreign asset disclosure per Section 139(6) mandatory for FEMA PIS equity held abroad + Form 8938 FATCA filing if foreign FEMA PIS equity held abroad > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ) + FBAR FinCEN 114 filing if foreign account aggregate > USD 10K. FEMA NRO 7-year retention per RBI Circular 47/2015 + 12/2015 + FEMA 1999 + RBI Master Direction 2024 (debated for FEMA PIS equity held in NRE brokerage account typically NOT applicable; consult FEMA consultant) + 10-year US/UK/CA/AU retention debated. Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6501(c)(8) 6-year statute of limitations on omission of foreign asset. Section 6677 USD 10,000 foreign trust penalty. PFIC Form 8621 Indian FEMA PIS equity NOT foreign mutual fund per Section 1297(e) typically NOT PFIC for US tax debated for held through foreign trust structure.

Indian FEMA PIS (Portfolio Investment Scheme) + equity direct investment — Indian tax rates + DTAA rates + FEMA USD 1M / year + senior 60+ parent estate India 2026

Section / Rule / FEMA provisionHolding period / FEMA routeTax rate + 4% cessNotes + DTAA + FEMA
Section 111A STCG (listed equity + STT paid + held < 12 months)< 12 months15% + 4% cess = 15.6% (NRI / OCI)Per Section 111A(1) + STT mandatory per Section 35AD + Section 111A proviso. NO indexation benefit. DTAA Article 13 typically allows India to tax STCG at 15% + 4% cess per India-USA DTAA Article 13(2) + saving clause. Section 195 NRI TDS at applicable rate + Section 197A lower TDS certificate from AO per Section 197 + Form 13 + Form 67 mandatory.
Section 112A LTCG (listed equity post-2018 + > 12 months + STT paid + aggregate > INR 1 lakh)> 12 months10% + 4% cess = 10.4% (NRI / OCI)Per Section 112A(1) + 4% cess per Section 2(11) + Section 112A proviso (grandfathering 23-Jan-2018 FMV as cost of acquisition). NO indexation benefit. Aggregate threshold INR 1 lakh per FY per Section 112A(1)(b)(ii). STT mandatory on acquisition + sale per Section 35AD. DTAA Article 13 typically allows India to tax LTCG at 10% + 4% cess per India-USA DTAA Article 13(2) + saving clause. Section 195 NRI TDS + Section 197A lower TDS certificate + Form 67 mandatory.
Section 112 LTCG (listed equity + > 12 months + Indexation Section 48(ii) CII 2001 base)> 12 months20% + 4% cess = 20.8% (NRI / OCI)Per Section 112(1)(a) + Indexation Section 48(ii) CII 2001 base debated (some CAs argue Section 112A replaces Section 112 for listed equity post-2018 — typical view is Section 112A applies for post-2018 + STT paid + aggregate > INR 1 lakh; consult CA). 4% cess per Section 2(11). DTAA Article 13 typically allows India to tax LTCG at 20% + 4% cess per India-USA DTAA Article 13(2) + saving clause. Section 195 NRI TDS + Section 197A lower TDS certificate + Form 67 mandatory.
Section 56(2)(vii) heir FULL EXEMPT specified relative (FEMA PIS equity inheritance)InheritanceFULL EXEMPTPer Section 56(2)(vii) + Section 56(2)(vii)(b) Explanation (specified relative includes spouse + brother + sister + spouse of brother + spouse of sister + brother or sister of spouse + any lineal ascendant or descendant + spouse of lineal ascendant or descendant). NRI / OCI heir receiving FEMA PIS equity from deceased parent FULL EXEMPT. Debated for monetary receipt per CBDT Circular 6/2016 + 24/2016 narrow reading typically FULL EXEMPT under broader reading; consult CA. NO tax + NO Section 56(2)(xi) deemed gift applicability for FEMA PIS equity inheritance from specified relative.
Section 56(2)(xi) deemed gift > INR 50,000 non-specified relative (FEMA PIS equity gift)GiftFULL VALUE as income in hands of recipientPer Section 56(2)(xi) + Section 56(2)(xi)(A) proviso (FULL EXEMPT if aggregate < INR 50,000 per FY). Debated for FEMA PIS equity gift from non-specified relative FULL VALUE taxable as 'income from other sources'. Section 56(2)(vii) heir FULL EXEMPT NOT applicable for FEMA PIS equity gift to non-specified relative (e.g., friend + colleague + non-relative). Indian Stamp Act 1899 Schedule I stamp duty on FEMA PIS equity gift deed typically 0.5% to 2% per state schedule (debated — FEMA PIS equity gift typically exempt from stamp duty per FEMA 1999 + RBI Master Direction 2024; consult FEMA consultant).
Section 45 transfer + Section 48 computation (FEMA PIS equity sale)SaleSale consideration - cost of acquisition - cost of improvement - transfer expensesPer Section 45(1) (transfer of capital asset chargeable under head 'capital gains') + Section 48(i) (sale consideration) + Section 48(ii) (cost of acquisition) + Section 48(iii) (cost of improvement) + Section 50C(1) stamp duty value NOT applicable for FEMA PIS equity per Section 50C(1) explicit text 'land or building or both' — Section 50C applies to immovable property only. Section 49(1) cost inheritance for FEMA PIS equity inherited (cost to previous owner) + Section 49(2)(iii) cost of acquisition to previous owner + Section 55(2) FMV 2001 (debated for FEMA PIS equity — typically Section 55(2) FMV 2001 NOT applicable for FEMA PIS equity acquired before 1-Apr-2001).
Section 194N cash withdrawal 10 lakh (FEMA PIS equity sale proceeds parking in NRO bank account)Cash withdrawal > INR 10 lakh per FY2% TDS > INR 1 Cr + 5% TDS > INR 1 Cr per Section 194NPer Section 194N(1) (co-operative bank + bank other than co-operative bank + post office) + Section 194N(2) (threshold INR 1 Cr per FY) + Section 194N(3) (threshold INR 20 lakh per FY if cash withdrawal exceeds INR 20 lakh per FY + no ITR filed for last 3 FY per Section 194N(3)(b)). Debated for FEMA PIS equity sale proceeds parking in NRE bank account typically NOT applicable; consult CA.
Section 80C deduction INR 1.5 lakh + Section 80CCD(1B) NPS Tier-1 INR 50,000InvestmentDeduction from gross total incomePer Section 80C (PPF + ELSS + NSC + KVP + ULIP + housing loan principal + tuition fees + life insurance premium). FEMA PIS equity direct investment typically NOT eligible for Section 80C deduction (Section 80C applies to specified financial instruments only per Section 80C(2)(d) + 80C(2)(e) + 80C(2)(f) + 80C(2)(h); equity direct investment NOT in list). Section 80CCE overall cap INR 1.5 lakh per Section 80CCE.
Section 54F residential house full LTCG exemption (FEMA PIS equity)ReinvestmentFULL EXEMPT LTCGPer Section 54F(1) (if all sale proceeds reinvested in new residential house within 2 years before or 1 year after sale OR construction within 3 years) + Section 54F proviso (3-year lock-in on new residential house) + Section 54F(4) (proportional exemption if cost of new residential house < sale proceeds). Senior 60+ parent can buy new residential house in India OR abroad — debated for FEMA PIS equity sale proceeds reinvested in foreign residential house typically NOT eligible for Section 54F exemption per Section 54F(1) explicit text 'purchase or construct a residential house' in India per Section 54F(1)(a) + Section 54F(1)(b) + CBDT Circular 6/2016 + 24/2016 narrower reading.
FEMA USD 1M / year LRS + Form A2 + AD-1 + FEMA compoundingRepatriationPenalty up to 3x per FEMA 1999 Section 13Per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 + FEMA compliance certificate from CA + Form 15CB + Form 15CA + 26Q + 27Q TDS return verification. FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024. FEMA compounding penalty up to 3x per FEMA 1999 Section 13. FEMA prior RBI approval debated for amounts > USD 1M / year + FEMA compounding if prior RBI approval not obtained per FEMA 1999 Section 13. FEMA NRO 7-year retention + 10-year US/UK/CA/AU retention debated.

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Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment flow — NRI / OCI senior 60+ parent + NRE / NRO brokerage account + designated bank AD-1 + Section 112 + 112A + 111A + FEMA USD 1M / year + senior 60+ parent estate India 2026

<svg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 800 600' font-family='sans-serif'><defs><marker id='arrow' markerWidth='10' markerHeight='10' refX='9' refY='3' orient='auto'><path d='M0,0 L0,6 L9,3 z' fill='#4F46E5'/></marker></defs><rect x='250' y='20' width='300' height='60' rx='8' fill='#EEF2FF' stroke='#4F46E5' stroke-width='2'/><text x='400' y='45' text-anchor='middle' font-size='14' font-weight='bold' fill='#312E81'>NRI / OCI Senior 60+ Parent</text><text x='400' y='65' text-anchor='middle' font-size='12' fill='#312E81'>FEMA PIS Equity Investor</text><rect x='250' y='120' width='300' height='50' rx='8' fill='#E0E7FF' stroke='#4F46E5' stroke-width='2'/><text x='400' y='140' text-anchor='middle' font-size='13' font-weight='bold' fill='#312E81'>Open NRE / NRO Bank + Brokerage + Demat</text><text x='400' y='158' text-anchor='middle' font-size='11' fill='#312E81'>Designated bank AD-1 + SEBI broker + NSDL/CDSL</text><rect x='250' y='200' width='300' height='50' rx='8' fill='#C7D2FE' stroke='#4F46E5' stroke-width='2'/><text x='400' y='220' text-anchor='middle' font-size='13' font-weight='bold' fill='#312E81'>Remit USD per FEMA USD 1M / year LRS</text><text x='400' y='238' text-anchor='middle' font-size='11' fill='#312E81'>Form A2 + AD-1 + CA cert + 15CB + 15CA</text><rect x='250' y='280' width='300' height='50' rx='8' fill='#A5B4FC' stroke='#4F46E5' stroke-width='2'/><text x='400' y='300' text-anchor='middle' font-size='13' font-weight='bold' fill='#1E1B4B'>Buy FEMA PIS Equity on BSE / NSE</text><text x='400' y='318' text-anchor='middle' font-size='11' fill='#1E1B4B'>STT paid per Section 35AD + T+1 settlement</text><rect x='250' y='360' width='300' height='50' rx='8' fill='#818CF8' stroke='#4F46E5' stroke-width='2'/><text x='400' y='380' text-anchor='middle' font-size='13' font-weight='bold' fill='#FFFFFF'>Hold FEMA PIS Equity</text><text x='400' y='398' text-anchor='middle' font-size='11' fill='#FFFFFF'>Section 112 + 112A + 111A + STT monitoring</text><rect x='250' y='440' width='300' height='50' rx='8' fill='#6366F1' stroke='#4F46E5' stroke-width='2'/><text x='400' y='460' text-anchor='middle' font-size='13' font-weight='bold' fill='#FFFFFF'>Sell FEMA PIS Equity + Tax</text><text x='400' y='478' text-anchor='middle' font-size='11' fill='#FFFFFF'>Section 45 + 48 + 195 TDS + 197A + Form 67</text><rect x='250' y='520' width='300' height='50' rx='8' fill='#4F46E5' stroke='#4338CA' stroke-width='2'/><text x='400' y='540' text-anchor='middle' font-size='13' font-weight='bold' fill='#FFFFFF'>Repatriate + Estate + ITR + Compliance</text><text x='400' y='558' text-anchor='middle' font-size='11' fill='#FFFFFF'>FEMA USD 1M + Form 8938 + FBAR + Will</text><line x1='400' y1='80' x2='400' y2='120' stroke='#4F46E5' stroke-width='2' marker-end='url(#arrow)'/><line x1='400' y1='170' x2='400' y2='200' stroke='#4F46E5' stroke-width='2' marker-end='url(#arrow)'/><line x1='400' y1='250' x2='400' y2='280' stroke='#4F46E5' stroke-width='2' marker-end='url(#arrow)'/><line x1='400' y1='330' x2='400' y2='360' stroke='#4F46E5' stroke-width='2' marker-end='url(#arrow)'/><line x1='400' y1='410' x2='400' y2='440' stroke='#4F46E5' stroke-width='2' marker-end='url(#arrow)'/><line x1='400' y1='490' x2='400' y2='520' stroke='#4F46E5' stroke-width='2' marker-end='url(#arrow)'/><text x='40' y='145' font-size='11' fill='#312E81' font-weight='bold'>Step 1</text><text x='40' y='225' font-size='11' fill='#312E81' font-weight='bold'>Step 2</text><text x='40' y='305' font-size='11' fill='#1E1B4B' font-weight='bold'>Step 3</text><text x='40' y='385' font-size='11' fill='#FFFFFF' font-weight='bold'>Step 4</text><text x='40' y='465' font-size='11' fill='#FFFFFF' font-weight='bold'>Step 5</text><text x='40' y='545' font-size='11' fill='#FFFFFF' font-weight='bold'>Step 6</text></svg>

Indian FEMA PIS (Portfolio Investment Scheme) + equity direct investment — compliance checklist for NRI / OCI senior 60+ parent India 2026

  • FEMA 1999 Schedule 3 + RBI PIS guidelines + RBI Master Direction 2024 — confirm NRI / OCI senior 60+ parent equity direct investment route
  • Designated bank AD-1 + FEMA compliance certificate from CA — open NRE / NRO bank + brokerage + NSDL / CDSL demat account
  • FEMA USD 1M / year LRS + Form A2 + AD-1 + FEMA compounding penalty up to 3x per FEMA 1999 Section 13 — remit funds
  • Form 15CB (CA certificate) + Form 15CA (declarant statement) — mandatory for FEMA remittance per FEMA PIS guidelines
  • PAN (mandatory for FEMA PIS equity) + Aadhaar (debated for NRI / OCI typically NOT mandatory; consult FEMA consultant)
  • Section 111A STCG 15% + 4% cess (listed equity + STT paid + held < 12 months)
  • Section 112A LTCG 10% + 4% cess (listed equity post-2018 + > 12 months + STT paid + aggregate > INR 1 lakh)
  • Section 112 LTCG 20% + 4% cess (listed equity + > 12 months + Indexation Section 48(ii) CII 2001 base debated)
  • Section 45 transfer + Section 48 computation + Section 50C(1) stamp duty NOT applicable for FEMA PIS equity
  • Section 194N cash withdrawal 10 lakh per FY TDS 2% + 5% (debated for FEMA PIS equity held in NRE brokerage account typically NOT applicable)
  • Section 56(2)(vii) heir FULL EXEMPT specified relative for FEMA PIS equity inheritance
  • Section 56(2)(xi) deemed gift > INR 50,000 non-specified relative for FEMA PIS equity gift
  • Section 54F residential house full LTCG exemption (all sale proceeds reinvested in new residential house within 2 years before or 1 year after sale OR construction within 3 years)
  • Section 195 NRI TDS at applicable rate + Section 197A lower TDS certificate from AO per Section 197 + Form 13
  • Form 67 mandatory per CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules + Form 10F per Rule 21AB
  • Section 90(4) 8-year TRC retention + DTAA Article 13 capital gains + saving clause + Form 8833 treaty disclosure
  • Schedule FA foreign asset disclosure per Section 139(6) mandatory for FEMA PIS equity held abroad
  • Form 8938 FATCA filing if foreign FEMA PIS equity held abroad > USD 50K (single / MFS) or > USD 300K (MFJ) end-of-year
  • FBAR FinCEN 114 filing if foreign account aggregate > USD 10K at any time during calendar year
  • PFIC Form 8621 (Indian FEMA PIS equity NOT foreign mutual fund per Section 1297(e) typically NOT PFIC for US tax debated for held through foreign trust structure)
  • Form 3520 + Form 3520-A + Section 6048 reporting for foreign trust distribution / ownership if FEMA PIS equity held through foreign trust structure
  • Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty
  • Section 6501(c)(8) 6-year statute of limitations on omission of foreign asset + FEMA NRO 7-year retention + 10-year US/UK/CA/AU retention debated
  • FEMA compounding penalty up to 3x per FEMA 1999 Section 13 + FEMA prior RBI approval debated for amounts > USD 1M / year
  • Senior 60+ parent estate — Will per Indian Succession Act 1925 Section 63 + 2 witnesses + codicil + executor + probate + nominee + transmission
  • Estate Tax Treaty + Gift Tax Treaty + Form 706 US estate tax + Form 709 US gift tax + Section 877A expatriation tax + covered expatriate
  • Indian Succession Act 1925 + Hindu Succession Act 1956 Section 6 coparcener + FEMA ED RBI Master Direction 2024 + nominee rights + heir transmission
  • NRI / OCI NOT eligible for ITR-1 per Rule 12(1) + typically ITR-2 or ITR-3 for FEMA PIS equity direct investment
  • Section 234A + 234B + 234C interest for delayed payment of advance tax + Section 271F late filing penalty + Section 270A 50%/200% under-reporting penalty
  • Section 271AAB 100%/200%/300% undisclosed income penalty + Section 271AAC 50%/200%/300% penalty for undisclosed income

FEMA PIS (Portfolio Investment Scheme) equity direct investment + FEMA USD 1M / year + Form 8938 FATCA + FBAR FinCEN 114 + Form 3520 + Form 3520-A + Section 6048 reporting + FEMA NRO 7y retention + senior 60+ parent estate India 2026

Indian FEMA PIS (Portfolio Investment Scheme) equity direct investment for NRI / OCI senior 60+ parent has multiple US / UK / CA / AU compliance layers beyond FEMA + RBI Master Direction 2024 + Section 112 + 112A + 111A + STT + Section 45 + 48 + 50C(1) + Section 194N + Section 56(2)(vii) heir FULL EXEMPT + Section 56(2)(xi) deemed gift + Section 54F residential house full LTCG exemption + FEMA USD 1M / year LRS + FEMA compounding 3x per FEMA 1999 Section 13. Below is the cross-border compliance flow for FEMA PIS equity direct investment held by NRI / OCI senior 60+ parent.

Step 1

Flow 1 — FEMA USD 1M / year LRS + Form A2 + AD-1 + FEMA compliance certificate + Form 15CB + Form 15CA

FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 bank + FEMA compliance certificate from CA + Form 15CB (CA certificate) + Form 15CA (declarant statement) + 26Q + 27Q TDS return verification. NRI / OCI senior 60+ parent remits funds from overseas bank account to Indian NRE / NRO bank account per FEMA USD 1M / year LRS + Form A2 + AD-1. FEMA compounding penalty up to 3x per FEMA 1999 Section 13 for non-compliance. FEMA prior RBI approval debated for amounts > USD 1M / year.

Step 2

Flow 2 — Form 8938 FATCA foreign FEMA PIS equity direct investment abroad > USD 50K (single / MFS) or > USD 300K (MFJ) end-of-year

Form 8938 FATCA filing per Section 6038D + Section 1298(f) reporting requirement for US person holding specified foreign financial asset > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ). FEMA PIS equity direct investment held abroad by NRI / OCI senior 60+ parent US person is a 'specified foreign financial asset' per Section 1298(f)(2) + 1298(g) — includes foreign stock + foreign brokerage account + foreign bank account + foreign mutual fund + foreign partnership interest. Form 8938 attached to Form 1040 + Section 6662 20-40% accuracy penalty per Section 6662(j) + Section 6038D(d) USD 10,000 penalty + Section 6501(c)(8) 6-year statute of limitations on omission of foreign asset.

Step 3

Flow 3 — FBAR FinCEN 114 foreign account aggregate > USD 10K at any time during calendar year

FBAR FinCEN 114 filing per 31 CFR 1010.350 (Bank Secrecy Act) for US person with financial interest in or signature authority over foreign account(s) aggregate > USD 10K at any time during calendar year. Indian NRE / NRO bank account + Indian demat account + FEMA PIS equity held abroad + Indian brokerage account + foreign bank account + foreign demat account + foreign brokerage account all 'foreign accounts' per 31 CFR 1010.350 + FinCEN guidance. FBAR filed electronically via BSA E-Filing System + due April 15 + automatic extension to October 15. Penalty per 31 USC 5321(a)(5) non-willful USD 10,000 per violation (adjusted for inflation) + willful up to greater of USD 100,000 or 50% of account balance.

Step 4

Flow 4 — PFIC Form 8621 (Indian FEMA PIS equity is NOT foreign mutual fund per Section 1297(e) typically NOT PFIC for US tax debated for held through foreign trust structure)

PFIC Form 8621 filing per Section 1298(f) for US person holding PFIC (Passive Foreign Investment Company). Indian FEMA PIS equity direct investment is NOT a foreign mutual fund per Section 1297(e) (mutual fund means a regulated investment company pooled fund) typically NOT PFIC for US tax purposes. Debated for FEMA PIS equity held through foreign trust structure (typically NOT PFIC if held directly; consult US tax advisor). Section 1291 excess distribution regime + Section 1295 QEF election (Qualified Electing Fund) + Section 1297(e) CFC + Section 1297(f) PFIC exception + Section 1298(b) PFIC reporting. PFIC Form 8621 attached to Form 1040.

Step 5

Flow 5 — Form 3520 + Form 3520-A + Section 6048 reporting for foreign trust distribution / ownership if FEMA PIS equity held through foreign trust structure

Form 3520 filing per Section 6048(c) for US person receiving distribution from foreign trust + Section 6048(b) for US person transferring property to foreign trust. Form 3520-A filing per Section 6048(d) for foreign trust with US owner. FEMA PIS equity direct investment held through foreign trust structure — Form 3520 mandatory for distribution + Form 3520-A mandatory for ownership + Section 6677 USD 10,000 foreign trust penalty per failure + Section 6501(c)(8) 6-year statute of limitations + Section 6662 20-40% accuracy penalty + Section 6663 75% fraud penalty. Debated for FEMA PIS equity held directly by NRI / OCI senior 60+ parent US person typically NOT applicable; consult US tax advisor.

Step 6

Flow 6 — Black Money Act 2015 + Form 3520 foreign FEMA PIS equity direct investment holdings undisclosed + FEMA NRO 7-year retention + 10-year US/UK/CA/AU retention debated

Black Money Act 2015 (Undisclosed Foreign Income and Assets and Imposition of Tax Act 2015) + Section 10/11 BMA + Form 3520 + Form 3520-A + Section 6048 reporting for undisclosed foreign FEMA PIS equity direct investment holdings + FEMA NRO 7-year retention per RBI Circular 47/2015 + 12/2015 + FEMA 1999 + RBI Master Direction 2024 debated for FEMA PIS equity held in NRE brokerage account (typically NOT applicable) + 10-year US/UK/CA/AU retention debated. Penalty per Black Money Act 2015 Section 10 (300% penalty on undisclosed foreign asset) + Section 11 (10-year rigorous imprisonment) + Section 49 (no set-off of foreign asset) + Section 50 (no exemption under wealth tax). Form 3520 attached to Form 1040.

Step 7

Flow 7 — Estate Tax Treaty + Gift Tax Treaty + Form 706 US estate tax + Form 709 US gift tax + Section 877A expatriation tax + covered expatriate

Estate Tax Treaty (India-USA Estate Tax Treaty 1954) + Gift Tax Treaty (no comprehensive India-USA Gift Tax Treaty — debated) + Form 706 US estate tax for US person estate > USD 12.92M (2025) + Form 709 US gift tax for US person gifting > USD 18,000 (2025). Section 877A expatriation tax for covered expatriate (renounced US citizenship or long-term resident per Section 7701(b)(6)) + Section 877A(g)(1) mark-to-market exit tax + Section 877A(h) gift / bequest tax + Section 877A(i) inheritance tax + Section 2501 + 2511 + 2518 GSTT + 2702 retained interest + Section 2036 + 2038 + 2056 + 2523 + FEMA PIS equity direct investment in estate of NRI / OCI senior 60+ parent US person.

Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment held by NRI / OCI senior 60+ parent — estate planning + compliance summary India 2026

Indian FEMA PIS (Portfolio Investment Scheme) equity direct investment for NRI / OCI senior 60+ parent requires a multi-layer compliance framework combining FEMA 1999 + RBI Schedule 3 FEMA 1999 + RBI Master Direction 2024 + Income Tax Act 1961 (Section 45 transfer + Section 48 computation + Section 50C(1) stamp duty NOT applicable for FEMA PIS equity + Section 112 + 112A + 111A + STT + Section 56(2)(vii) heir FULL EXEMPT + Section 56(2)(xi) deemed gift > INR 50,000 + Section 54F residential house full LTCG exemption + Section 195 NRI TDS + Section 197A lower TDS + Section 80C) + DTAA Article 13 capital gains + Form 67 mandatory + Section 90(4) 8-year TRC retention + FEMA USD 1M / year LRS + Form A2 + AD-1 + FEMA compounding 3x per FEMA 1999 Section 13 + Form 8938 FATCA + FBAR FinCEN 114 + Form 3520 + Form 3520-A + Section 6048 reporting + Black Money Act 2015 + Section 6662 20-40% accuracy + Section 6663 75% fraud + FEMA NRO 7-year retention + 10-year US/UK/CA/AU retention debated + Indian Succession Act 1925 Will + FEMA ED RBI Master Direction 2024 nominee + senior 60+ parent estate India 2026.

Senior 60+ parent estate planning for FEMA PIS equity direct investment requires Will per Indian Succession Act 1925 Section 63 + 2 witnesses + codicil + executor + probate + Letters of Administration + succession certificate + Hindu Succession Act 1956 Section 6 coparcener + FEMA ED RBI Master Direction 2024 + nominee rights + FEMA PIS equity direct investment broker demat account nominee + heir transmission + Estate Tax Treaty + Gift Tax Treaty + Form 706 US estate tax + Form 709 US gift tax + Section 877A expatriation tax + covered expatriate. Section 56(2)(vii) heir FULL EXEMPT specified relative for FEMA PIS equity inheritance per Section 56(2)(vii)(b) Explanation — NRI / OCI heir receiving FEMA PIS equity from deceased parent FULL EXEMPT (debated for monetary receipt per CBDT Circular 6/2016 + 24/2016 narrow reading typically FULL EXEMPT under broader reading; consult CA). Section 56(2)(xi) deemed gift > INR 50,000 non-specified relative for FEMA PIS equity gift to non-specified relative (e.g., friend + colleague + non-relative). FEMA compounding penalty up to 3x per FEMA 1999 Section 13 for non-compliance — FEMA compounding application to RBI ED per FEMA 1999 Section 13(1) + FEMA compounding order per FEMA 1999 Section 13(2).

Annual compliance for FEMA PIS equity direct investment includes FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 + FEMA compounding penalty up to 3x per FEMA 1999 Section 13 + Schedule FA foreign asset disclosure per Section 139(6) mandatory for FEMA PIS equity held abroad + Form 8938 FATCA filing if foreign FEMA PIS equity held abroad > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ) + FBAR FinCEN 114 filing if foreign account aggregate > USD 10K at any time during calendar year + Form 3520 + Form 3520-A + Section 6048 reporting for foreign trust distribution / ownership if FEMA PIS equity held through foreign trust structure. PFIC Form 8621 Indian FEMA PIS equity NOT foreign mutual fund per Section 1297(e) typically NOT PFIC for US tax debated for held through foreign trust structure. FEMA NRO 7-year retention per RBI Circular 47/2015 + 12/2015 + FEMA 1999 + RBI Master Direction 2024 debated for FEMA PIS equity held in NRE brokerage account (typically NOT applicable for FEMA PIS equity held through NRE brokerage account; consult FEMA consultant) + 10-year US/UK/CA/AU retention debated. Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty + Section 6501(c)(8) 6-year statute of limitations on omission of foreign asset. Section 234A + 234B + 234C interest for delayed payment of advance tax + Section 271F late filing penalty + Section 270A 50%/200% under-reporting penalty + Section 271AAB 100%/200%/300% undisclosed income penalty + Section 271AAC 50%/200%/300% penalty for undisclosed income.

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Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment + FEMA USD 1M / year + senior 60+ parent estate India 2026 — compliance infographic

Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment + FEMA USD 1M / year + senior 60+ parent estate India 2026 — compliance infographic.

Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment — flow step 1 NRI / OCI senior 60+ parent + FEMA USD 1M / year + senior 60+ parent estate India 2026

Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment — flow step 1 NRI / OCI senior 60+ parent + FEMA USD 1M / year + senior 60+ parent estate India 2026.

Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment — flow step 2 FEMA USD 1M / year + Form 8938 FATCA + FBAR + senior 60+ parent estate India 2026

Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment — flow step 2 FEMA USD 1M / year + Form 8938 FATCA + FBAR + senior 60+ parent estate India 2026.

Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment + FEMA USD 1M / year + senior 60+ parent estate India 2026

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NRI parent senior 60+ Indian FEMA PIS (Portfolio Investment Scheme) + RBI Schedule 3 FEMA 1999 + equity direct investment + NRE brokerage account + NRO brokerage account + designated bank + AD-1 bank + Section 112 LTCG 20% + Section 112A LTCG 10% + Section 111A STCG 15% + STT paid + Section 45 transfer + Section 48 computation + Section 50C(1) stamp duty + Section 194N cash withdrawal + Section 54F residential house + Section 56(2)(vii) heir FULL EXEMPT + Section 56(2)(xi) deemed gift + FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 + FEMA compounding penalty up to 3x per FEMA 1999 Section 13 + Section 195 NRI TDS + Section 197A lower TDS + DTAA Article 13 + Form 67 mandatory + Section 90(4) 8-year TRC retention + Black Money Act 2015 + Form 3520 + Form 3520-A + Form 8938 FATCA + FBAR FinCEN 114 + FEMA NRO 7y + 10y retention + FEMA compounding + senior 60+ parent estate India 2026. Animated decision map.
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Common Questions

What is Indian FEMA PIS (Portfolio Investment Scheme) for NRI / OCI senior 60+ parent equity direct investment?

Indian FEMA PIS (Portfolio Investment Scheme) per RBI Schedule 3 FEMA 1999 + RBI Master Direction 2024 is the mandatory route for NRI / OCI senior 60+ parent to do equity direct investment in Indian listed equity on Indian stock exchange (BSE + NSE). NRI / OCI cannot invest in Indian listed equity through general LRS route per FEMA 1999 + RBI Master Direction 2024 (debated for debt PMS / AIF typically mandatory for equity). FEMA PIS route requires NRE brokerage account (for repatriable investment) + NRO brokerage account (for non-repatriable investment) per RBI PIS guidelines + designated bank AD-1 for fund remittance + FEMA compliance certificate from CA + Form 15CB (CA certificate) + Form 15CA (declarant statement) per FEMA PIS guidelines + RBI Master Direction 2024. SEBI registered broker + NSDL + CDSL depository + DP ID + BO ID + ISIN + delivery vs payment + settlement cycle T+1 + STT paid per Section 35AD. FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 + FEMA compounding penalty up to 3x per FEMA 1999 Section 13.

How is Indian FEMA PIS equity direct investment taxed for NRI / OCI senior 60+ parent — Section 112 LTCG + 112A LTCG + 111A STCG?

Indian FEMA PIS equity direct investment for NRI / OCI senior 60+ parent is taxed per Section 111A STCG 15% (listed equity + STT paid + held < 12 months + 4% cess) + Section 112A LTCG 10% (listed equity post-2018 + > 12 months + STT paid + aggregate > INR 1 lakh per FY + 4% cess) + Section 112 LTCG 20% (listed equity + > 12 months + Indexation Section 48(ii) CII 2001 base debated + 4% cess). Section 45 transfer on actual sale + Section 48 computation = sale consideration - cost of acquisition - cost of improvement - transfer expenses per Income Tax Act 1961. Section 50C(1) stamp duty value deemed sale consideration NOT applicable for FEMA PIS equity per Section 50C(1) explicit text 'land or building or both' — Section 50C applies to immovable property only per Section 50C(1) plain text. Section 195 NRI TDS at applicable rate + Section 197A lower TDS certificate from AO per Section 197 + Form 13 + DTAA rate + Form 67 mandatory per CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules + Section 90(4) 8-year TRC retention + Form 10F per Income Tax Rules 1962 Rule 21AB.

What is FEMA USD 1M / year LRS + FEMA compounding penalty for NRI / OCI senior 60+ parent FEMA PIS equity direct investment?

FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + Form A2 + AD-1 bank + FEMA compliance certificate from CA + Form 15CB (CA certificate) + Form 15CA (declarant statement) + 26Q + 27Q TDS return verification. NRI / OCI senior 60+ parent remits funds per FEMA USD 1M / year LRS + Form A2 + AD-1 + FEMA compounding penalty up to 3x per FEMA 1999 Section 13. FEMA prior RBI approval debated for amounts > USD 1M / year (typically NOT required for FEMA PIS equity up to USD 1M / year per FEMA 1999 + RBI Master Direction 2024) + FEMA compounding if prior RBI approval not obtained per FEMA 1999 Section 13. FEMA compounding application to RBI ED per FEMA 1999 Section 13(1) + FEMA compounding order per FEMA 1999 Section 13(2) + FEMA compounding circular FEMA 2017 + FEMA compounding rate per FEMA compounding master direction + FEMA compounding penalty up to 3x of the amount involved. FEMA NRO 7-year retention per RBI Circular 47/2015 + 12/2015 + FEMA 1999 + RBI Master Direction 2024 debated for FEMA PIS equity held in NRE brokerage account (typically NOT applicable; consult FEMA consultant) + 10-year US/UK/CA/AU retention debated.

Is Indian FEMA PIS equity direct investment eligible for Section 54F residential house full LTCG exemption for NRI / OCI senior 60+ parent?

Yes — Section 54F residential house full LTCG exemption per Section 54F(1) applies to FEMA PIS equity direct investment sale for NRI / OCI senior 60+ parent. Per Section 54F(1) — if all sale proceeds reinvested in new residential house within 2 years before or 1 year after sale OR construction within 3 years — full LTCG exemption. Section 54F proviso (3-year lock-in on new residential house) + Section 54F(4) (proportional exemption if cost of new residential house < sale proceeds). Senior 60+ parent can buy new residential house in India OR abroad — debated for FEMA PIS equity sale proceeds reinvested in foreign residential house typically NOT eligible for Section 54F exemption per Section 54F(1) explicit text 'purchase or construct a residential house' in India per Section 54F(1)(a) + Section 54F(1)(b) + CBDT Circular 6/2016 + 24/2016 narrower reading. NRI / OCI senior 60+ parent should consult CA + FEMA consultant for FEMA compounding implications of foreign residential house purchase per FEMA 1999 + RBI Master Direction 2024.

Is Indian FEMA PIS equity direct investment inheritance FULL EXEMPT under Section 56(2)(vii) for NRI / OCI senior 60+ parent heir?

Yes — Section 56(2)(vii) heir FULL EXEMPT specified relative for FEMA PIS equity direct investment inheritance — NRI / OCI heir receiving FEMA PIS equity from deceased parent FULL EXEMPT per Section 56(2)(vii) + Section 56(2)(vii)(b) Explanation (specified relative includes spouse + brother + sister + spouse of brother + spouse of sister + brother or sister of spouse + any lineal ascendant or descendant + spouse of lineal ascendant or descendant). Debated for monetary receipt per CBDT Circular 6/2016 + 24/2016 narrow reading typically FULL EXEMPT under broader reading; consult CA. NO tax + NO Section 56(2)(xi) deemed gift applicability for FEMA PIS equity inheritance from specified relative. Section 49(1) cost inheritance for FEMA PIS equity inherited (cost to previous owner) + Section 49(2)(iii) cost of acquisition to previous owner + Section 55(2) FMV 2001 debated for FEMA PIS equity acquired before 1-Apr-2001. Indian Succession Act 1925 + Will + nominee + transmission + FEMA ED RBI Master Direction 2024 + Estate Tax Treaty + Gift Tax Treaty + Form 706 US estate tax + Form 709 US gift tax + Section 877A expatriation tax + covered expatriate for senior 60+ parent estate.

What are US Form 8938 FATCA + FBAR FinCEN 114 + Form 3520 + Section 6048 reporting requirements for NRI / OCI senior 60+ parent FEMA PIS equity direct investment?

Form 8938 FATCA filing per Section 6038D + Section 1298(f) for US person holding specified foreign financial asset > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ). FEMA PIS equity direct investment held abroad by NRI / OCI senior 60+ parent US person is a 'specified foreign financial asset' per Section 1298(f)(2) + 1298(g). Form 8938 attached to Form 1040 + Section 6662 20-40% accuracy penalty per Section 6662(j) + Section 6038D(d) USD 10,000 penalty + Section 6501(c)(8) 6-year statute of limitations. FBAR FinCEN 114 filing per 31 CFR 1010.350 for US person with financial interest in or signature authority over foreign account(s) aggregate > USD 10K. Indian NRE / NRO bank account + Indian demat account + FEMA PIS equity held abroad + Indian brokerage account all 'foreign accounts'. PFIC Form 8621 Indian FEMA PIS equity NOT foreign mutual fund per Section 1297(e) typically NOT PFIC for US tax debated for held through foreign trust structure. Form 3520 + Form 3520-A + Section 6048 reporting for foreign trust distribution / ownership if FEMA PIS equity held through foreign trust structure + Section 6677 USD 10,000 foreign trust penalty. Black Money Act 2015 + Form 3520 foreign FEMA PIS equity direct investment holdings undisclosed + FEMA NRO 7-year retention + 10-year US/UK/CA/AU retention debated.

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