Ch.9 · Systematic Transactions — SIP, SWP, STP · hard
An NRI investor from the UK redeems units from an equity mutual fund held for 15 months. The AMC will deduct TDS at:
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EXPLANATION
For NRIs, TDS is deducted at 12.5% on LTCG from equity funds (held >12 months) under Section 112A plus applicable surcharge and cess. The ₹1.25 lakh annual exemption applies but TDS is deducted on the full gain — the investor claims the exemption via ITR filing.
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