MUTUAL FUND TAXATION FOR NRIS

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DISCLAIMER

This Is Not A Tax Or Legal Advice
Consult Your Chartered Accountants Before You File Tax Returns

NRI MISCONCEPTION

NRIs Believe All Investments By Them Are Tax Free- NOT CORRECT
Only Interest Earned On NRE FD Is Tax Free

NRI REALITY – Mutual Fund Taxation

NRIs Are Liable To Pay Taxes Like Resident Indians
NRIs Have Higher Rate Of TDS

NRI MISCONCEPTION

NRIs Believe TDS Is The Tax Payable – NOT CORRECT
TDS Is Preventive Taxation
Excess TDS done Can Be Claimed Back
You Are Liable To Pay Additional Tax If TDS Is Lesser

LONG TERM CAPITAL GAINS TAX – Equity Funds

Units Held For More Than 12 Months Will Qualify For LTCGT
10% Without Indexation + Applicable Surcharge and Cess Applicable
TDS For NRIS @11.96% Or 11.44%

SHORT TERM CAPITAL GAINS TAX – Equity Funds

Units Held For Less Than 12 Months Will Qualify For STCGT
15% Without Indexation + Applicable Surcharge and Cess Applicable
TDS For NRIS @17.94% Or 17.16%

LONG TERM CAPITAL GAINS TAX – Debt & Non Equity Funds

Units Held For More Than 36 Months Will Qualify For LTCGT
20% With Indexation Benefits + Applicable Surcharge and Cess Applicable
TDS For NRIS @22.88% Or Up to 28.49%

SHORT TERM CAPITAL GAINS TAX – Debt & Non Equity Funds

Units Held For Less Than 36 Months Will Qualify For STCGT
Treated As Income Of The Year And Income Tax Slab Rate Applies
TDS For NRIS @34.32% Or More

TAXATION OF DIVIDENDS – Equity & Non Equity Scheme

Treated As Income Of The Year And Income Tax Slab Rate Applies
TDS For NRIS @22..88% Or More

TAXATION METHODOLOGY FOR SIP INVESTMENTS

Taxed On First In First Out Basis

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