NRI guide — Singapore: what Dhansanchay families in Singapore should know
We serve several NRI families based in Singapore, and the questions they ask tend to follow a consistent pattern. This article addresses the most common ones — specific to the Singapore context — in one place.
Singapore does not levy capital gains tax. This is the single most important fact for your India portfolio. Under the India-Singapore DTAA, and supported by the April 2025 ITAT ruling, capital gains from Indian mutual fund redemptions may be taxable only in Singapore — where the rate is zero. To claim this benefit, you need a valid Certificate of Residence (COR) from the Inland Revenue Authority of Singapore (IRAS) and Form 10F filed on the Indian income tax portal.
The India-Singapore DTAA was amended in 2016 to remove the beneficial treatment for capital gains on shares. However, the ITAT ruling clarified that mutual fund units are not shares — they are trust units — and therefore fall under the residual clause (Article 13(5)), which gives taxing rights only to Singapore. This is being contested by the Indian tax department, so monitor for developments — but as of April 2026, the ruling stands.
SIP investments from Singapore should flow through an NRE account funded by SGD-to-INR remittances. Most families remit quarterly or monthly. We recommend a fixed monthly rhythm — treating the remittance like a SIP for the SIP. This averages out the SGD-INR exchange rate and removes the temptation to time currency.
CPF and SRS: Your Singapore retirement savings (CPF and Supplementary Retirement Scheme) are separate from your India investments. We do not advise on CPF allocation — that is governed by Singapore law. But we do help ensure that your India portfolio and your Singapore retirement savings are not duplicating the same risk — if your CPF is heavily in equities, your India SIP may benefit from a more balanced allocation.
Nominations on Indian folios should name your spouse or an India-based family member as the nominee. Ensure they have copies of your folio statements, AMC contact details, and know the process for claiming in the event of an emergency.
At Dhansanchay we see the best outcomes when the plan is boring on paper and steady in execution. Written for general education — not as individual investment, tax, or legal advice. If a point touches your situation, discuss it with a qualified advisor.
NRI taxation, FEMA regulations, and DTAA provisions are complex and change frequently. This article reflects our understanding as of April 2026 and is for general education only. It is not tax, legal, or investment advice. Always consult a qualified chartered accountant or cross-border tax advisor for guidance specific to your residency status, country of residence, and financial situation.