Hi,
If I hold stock in individual ordinary trading account who later became an NRI.
Is it ideal to transfer the stock to NRI account or sell it off in that account itself whenever
The way i understand is. You have stocks which u bought as a resident and now you are a non resident
You have two options. You can ask your broker to change the status to nro or sell as is. In icici direct this is called nro pins ac.
What you cannot do is convert the stocks which you bought when u were resident to non resident.
Now that you are non resident you need to open a separate ac and use nre funds to buy stocks.
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Is it possible to convert existing Resident account to NRO account?
I recently opened NRE/NRO account other than my resident account on different brokers.
The quantity of stock isn’t much so is it ideal to sell the stock and file tax or I have to only transfer then sell from that account?
If the quantity is not too high sell and buy from the newly opened nro ac.
This is easier but of course u need to worry about tax when selling.
But ask your broker if possible to convert as this is only change in status from resident to nro. If it is easy why sell and pay tax
If you are an NRI with a resident demat account in Zerodha that holds securities, you can choose to convert your existing account to an NRI (NRO non-PIS) category. After the conversion, your current holdings will be moved to the updated account.
If you have a resident account with another broker and wish to open a new NRI account with a different broker, you can only transfer shares from your resident account to an NRO non-PIS category trading and demat account. Alternatively, you can do a closure-cum-transfer in order to transfer the shares from broker A (Resident) to broker B (NRO non-PIS).