Ch.8 · Capital Gains Tax on Mutual Funds · hard
What TDS is applicable on equity mutual fund redemptions by NRI investors?
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EXPLANATION
For NRI investors, AMCs/RTAs deduct TDS on capital gains from mutual fund redemptions: STCG at 15% (plus surcharge and cess) and LTCG at 12.5% (plus surcharge and cess) for equity funds. NRIs can claim benefits under the Double Taxation Avoidance Agreement (DTAA) between India and their country of residence to potentially pay lower tax. NRIs must file Form 15G/15H or DTAA declaration for concessional rates.
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