Here is a table which shows you the actual tax rate applicable and the corresponding TDS rate applied to Non Resident Individuals for their investment in Indian mutual funds. Check More details for “Tax Implications of Mutual Funds on NRIs Full Guide” from below…… If you like this article then please like us on Facebook so that you can get our updates in future ……….and subscribe to our mailing list ”freely “ Recommended Articles
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Tax Implications of Mutual Funds on NRIs Full
Short term capital gains
Units of Non-equity oriented scheme such as debt and money market mutual funds should be taxed as per your income tax slab, but the TDS is deducted at the highest applicable rate of 30%, irrespective of what tax slab you belong to; while the units of Equity oriented mutual funds are taxed @ 15%.
Long term capital gains
Units of Non-equity oriented scheme if listed are taxed at 10% without indexation or 20% with indexation whichever is lower but the portfolio manager will deduct TDS at flat rate of 20% for NRIs. Units of a non-equity oriented scheme if unlisted are taxed at 10% without indexation while Long Term capital gains on units of an equity oriented scheme are exempt from tax as Securities Transaction Tax is payable on redemption.
Conclusion
After going through above details, you would have probably got an idea about the impact of tax on your investment plan. I do agree that taxation can be a complicated matter and to get more details you may want to visit your financial advisor or tax consultant before committing a costly tax mistake. Good luck for your investments. Recommended Articles
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