India and cross-border

2 · Think of it like thisThink of a home-grown company working in its home market. A domestic or onshore fund is set up in India, regulated by SEBI, and mostly invests in India.

2 · Think of it like thisThink of a fund in a special international zone inside India. An IFSC fund sits in GIFT City, is regulated by IFSCA, usually works in foreign currency and can invest in India and abroad.

2 · Think of it like thisThink of a company registered abroad. An offshore fund is set up outside India, for example in Singapore or Luxembourg, under that country's rules.

2 · Think of it like thisThink of shopping in your own city versus shopping abroad. Where a fund is set up and where it invests are two separate questions: an Indian fund can invest abroad, and a foreign fund can invest in India.

2 · Think of it like thisThink of a local collection point sending everything to a central hub overseas. Investors put money into a feeder near them, and the feeder passes it to a master fund in another country.

2 · Think of it like thisThink of your home address for the tax office. Tax residency decides which country treats a fund or person as its own taxpayer. It usually, but not always, matches where the fund is set up.

2 · Think of it like thisThink of TDS: tax taken out before you receive your payment. Withholding tax is deducted by the payer, such as a company paying dividends, before the money reaches the fund.

2 · Think of it like thisThink of an agreement between two cities not to charge the same toll twice. A tax treaty between two countries can reduce or remove double tax on the same income, if the conditions are met.

2 · Think of it like thisThink of sending your earnings back home. Repatriation is moving money, such as sale proceeds or dividends, out of the country where it was invested and back to the investor's country.

2 · Think of it like thisLike a local agent appointed under a special tax arrangement to manage an overseas fund's money.