Ch.8 · Capital Gains Tax on Mutual Funds · hard
What is the tax on overseas Fund of Funds (investing in foreign equity funds)?
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EXPLANATION
Overseas Fund of Funds (investing in foreign mutual funds or ETFs) are treated the same as domestic debt FoFs for tax purposes — gains are taxed at the investor's applicable income tax slab rate regardless of holding period (post April 2023). Even though underlying investments may be in global equities, the FoF structure denies equity taxation treatment in India.
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