Hey folks,
I’m thinking on global diversification. After reading post here, I’ve decided to avoid US-domiciled ETFs because the 30% dividend withholding and estate tax risk.
My Plan:
I’m looking to remit ~₹6L in one go every year to stay within the ₹10L TCS-free limit. To avoid 12 separate bank wires/forex fees, I want to park the full ₹6L in a USD liquid accumulating fund and then sell ~₹50k worth every month to buy into my long-term equity ETFs.
This effectively creates about 25-30 transactions a year (12 sells, 12 buys, 1 wire).
The Dilemma:
IBKR Direct: I know it's the cheapest long-term, but I’m worried about the manual LRS/FEMA paperwork for every remittance and the Schedule FA reporting at the end of the year.
Paasa: They claim to be a "compliance layer" over IBKR that automates the 15CA/CB and gives a tax-ready report for the ITR. For those using it—is this worth the "peace of mind," or is it just expensive UI?
INDmoney: I’ve almost ruled them out since they don't offer Ireland-domiciled funds, but if the first two options are a compliance nightmare, should I just settle for US-domiciled and take the 30% tax hit for the sake of my sanity?
A few specific asks:
• For those with 20+ global transactions a year: Does this make Schedule FA a total nightmare for a local CA? My CA is solid with Indian tax but hasn't done much "global" stuff.
• Do you guys use a specialized service (like TaxNodes/ClearTax) for your global filings, or is it simple enough for a regular CA to handle if the platform provides the reports?
• Is the "Holding Tank" (Liquid fund -> Equity ETF) a common way to do it, or is there a smarter way to manage monthly deployment without 12 bank wires?
Would love to hear from anyone who has actually managed an Ireland UCITS portfolio for a few years.