Will my redemption amount come directly to my NRO account?

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I am investing in mutual funds through my NRO account for the last three months. I have a doubt: will the amount be credited directly to my NRO account when I redeem my mutual fund units? Or I will have to submit any tax papers for redemption? Does an NRO account take more tax for redemption compared to a savings bank account? Presently, I transfer the amount from NRI to NRO for the SIP. Do I need more paper work at the redmeption time ?
-- Joseph joy


Suresh Sadagopan, Founder, Ladder7 Financial Advisors, responds:

If you have invested from NRO account, the proceeds will come to NRO account only. Taxation as applicable will be deducted at source for NRIs. If you are eligible for a refund, you need to file returns and can get a refund of the amount deducted.



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