If I invest from NRO account will it be taxable

I am an NRI and investing in MF as NRI repatriable. Recently I recevied lump sum mony from indian by redeeming my life insurance policy. If i invest this amount in a balance fund is it taxable. I understand if an NRI deposit money in NRO is taxable?

Jul 21, 2017 by Sambasivan, Trivandrum | Mutual Fund

Depositing any money in your NRO bank account is not taxable.

You can easily invest into balanced funds from your NRO account. If you hold your balanced fund investments for more than a year the returns will be tax free. Also, if you receive dividends from balanced funds that is also tax free.

Please also note that, as you are investing from NRO account the proceeds are not repatriable.

One more point, if you are a US or Canada based NRI then there are some restrictions as all the AMCs in India do not accept investments from US and Canada based NRIs. Only select AMCs accept investments from US and Canada based NRIs - Please read this https://www.advisorkhoj.com/post-your-queries...

Hope the above clears your doubt. Thanks for writing to Advisorkhoj.

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