Passlane Sign in

Ch.9 · KYC and Folio Management · hard

What TDS rate applies on long-term capital gains from equity mutual fund redemptions for an NRI investor?

0% of students got this wrong

EXPLANATION

NRI investors are subject to TDS at 12.5% on LTCG from equity mutual funds (Section 112A), plus applicable surcharge and health & education cess. TDS is deducted at source before redemption proceeds are credited.

A.10% (same as resident investors)

B.20% flat without surcharge

C.12.5% plus applicable surcharge and cess [✓ Correct]

D.30% as NRIs are taxed at the highest slab

EXPLANATION

NRI investors are subject to TDS at 12.5% on LTCG from equity mutual funds (Section 112A), plus applicable surcharge and health & education cess. TDS is deducted at source before redemption proceeds are credited.

Practising Chapter 9 one question at a time?

Try the full chapter — 80 questions, tracked score, weak area breakdown.

Practice Chapter 9 →Take the mock test →