What is the TDS rate for Mutual Funds? If I am taxed at 15% (TDS) for Equity STCG and if I fall in the 0% tax rate slab, will I be eligible for a refund?
SBNRI Team
answered on 16/11/2020
The tax on Mutual Funds will be deducted on the format for TDS for an NRI. There are no separate rates for TDS. For an NRI investing in Mutual Funds in India, the gains are pre-taxed (TDS) before they are received in the bank account of the NRI.
Is NRI eligible for refund on TDS?
For non-residents, basic exemption limit can be availed only against incomes that are chargeable at normal slab rates applicable to individuals. STCG on listed equity shares and equity oriented mutual funds is taxed at special rate of 15%, irrespective of the tax slab that the individual falls in. Non-residents CAN NOT avail basic exemption limit against such incomes.
Hence, NRIs are liable to pay tax on such incomes @15% irrespective of the tax slab they fall in. This tax gets deducted at source, and is NOT refundable to NRIs.
If you have any other questions regarding taxation on NRI Investments in India then click on the button below connect you to our tax expert.
Related Questions
SBNRI Team
answered on 01/03/2023
A SIP or Systematic Investment Plan is a payment of a fixed amount made at regular intervals for any investment opportunity such as Mutual Funds, trading accounts etc. NRIs are eligible to invest in SIP in India. Is SIP Tax-Free in India? SIP is not tax free for NRIs. Different types of Mutual […]
SBNRI Team
answered on 30/03/2020
Best Mutual funds for US NRIs: Updated List 2020 DHFL Pramerica Mutual Fund Birla Sun Life Mutual Fund ICICI Prudential Mutual Fund SBI Mutual Fund UTI Mutual Fund L&T Mutual Fund PPFAS Mutual Fund (Parag Parikh Financial Advisory Services) Sundaram Mutual Fund Different types of Mutual Funds are taxed differently: While there are multiple […]
SBNRI Team
answered on 21/03/2023
A SIP or Systematic Investment Plan is a payment of a fixed amount made at regular intervals for any investment opportunity such as Mutual Funds, trading accounts etc. SIP calculator for NRI To calculate the returns on SIP for your mutual fund investments you need the following data: Monthly Investment Amount Percentage of Returns […]
SBNRI Team
answered on 01/03/2023
Online Mutual Fund KYC for NRI is a seamless online process through which NRIs can easily complete their KYC requirements for Mutual Funds by submitting the documents online and verifying them through In-Person Verification (IPV). Mutual Fund KYC through SBNRI App NRIs/ OCIs can download the SBNRI app to complete the KYC process seamlessly and […]
