Ch.8 · Dividend and STT Taxation · hard
What is the TDS provision for NRI investors redeeming debt mutual fund units?
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EXPLANATION
For NRI investors redeeming debt mutual fund units, TDS is deducted at 30% on the capital gains (or lower as per DTAA with the investor's country of residence). This is higher than equity fund TDS for NRIs. NRIs must file Form 15G or DTAA declaration with the AMC if they wish to claim treaty benefits and reduce the TDS rate. The TDS is deducted from redemption proceeds before crediting to the NRI's bank account.
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