You could be owed a tax refund and not even know it. With a refund calculator, you can do it in one click.
As an NRI, you’re investing smartly in mutual funds in India. But what if we told you that you might be losing thousands in excess tax, just because you didn’t check?
That’s right. Mutual fund taxation for NRIs involves flat TDS deductions that often exceed your actual tax liability. The worst part? Most NRIs never track this or claim a refund.
So if you’ve ever redeemed a mutual fund, earned rent, or received interest in India, we have built a super-efficient tool that can check your refund eligibility in on -click.
Did you know?
It is estimated that over $500 million in tax refunds go unclaimed by NRIs every year. A large chunk of this comes from excess TDS on mutual fund redemptions, fixed deposits, rental income, and interest earnings.
If you’re not sure whether you’ve overpaid or how to check, use our NRI TDS Refund Calculator to reclaim what’s rightfully yours.
Read this article to know everything you need to know about these TDS deductions on mutual fund gains, and how NRIs can claim it.
How TDS Works for NRIs in Mutual Funds
The Indian tax system treats NRIs differently from residents, especially when it comes to mutual funds. Here’s a quick breakdown.
When you redeem mutual fund units in India, the Asset Management Company (AMC) is required to deduct TDS before the money even hits your bank account. The rate of TDS depends on the type of fund and the nature of the gain.
- Equity Mutual Funds
- Short-term capital gains (sold within 1 year): 15% TDS
- Long-term capital gains (after 1 year): 10% TDS on gains above ₹1 lakh
- Debt Mutual Funds
- Short-term capital gains (sold within 3 years): Taxed as per your tax slab, but 30% TDS is usually deducted
- Long-term capital gains (after 3 years): 20% TDS with indexation
For NRIs, TDS is deducted automatically by the Asset Management Company (AMC) when you redeem your mutual fund units, regardless of your total income in India. These TDS rates apply even if your total income in India is below the exemption limit, or if your country has a Double Taxation Avoidance Agreement (DTAA) with India.
Why NRIs Often Overpay: The TDS Trap
Let’s say you earned ₹60,000 from a debt mutual fund after three years.
The AMC deducts ₹12,000 (20%) as TDS.
Now, imagine your only income in India that year was ₹1,80,000, which is below the basic exemption limit of ₹2,50,000. You technically owe zero tax, but you’ve already lost ₹12,000.
If you don’t file an Income Tax Return (ITR) in India, you won’t get that money back.
And this doesn’t apply just to mutual funds. Similar TDS is deducted from:
- Interest on NRO fixed deposits
- Rental income from Indian property
- Dividends from Indian stocks and mutual funds
- Capital gains from property sales
Over time, the unclaimed amounts pile up
Capital Gains Tax for NRIs on Mutual Funds: A Quick Breakdown
| Type of Gain | Fund Type | Holding Period | TDS Rate | Refund Possibility |
| Short-Term Capital Gain | Equity | < 1 year | 15% | Yes |
| Long-Term Capital Gain | Equity | > 1 year | 10% | Yes (after ₹1L) |
| Short-Term Capital Gain | Debt | < 3 years | 30% | Yes |
| Long-Term Capital Gain | Debt | > 3 years | 20% | Yes |
How to Track and Claim Your TDS Refund (Easily!)
One-click solution:
SB NRI has partnered with the Government, BSE, and MF Central to make the process easier.
Use our secure NRI TDS Refund Calculator. It’s simple:
- Enter your PAN and email ID
- The tool fetches your consolidated TDS data
- You see how much you can claim
- Use this to file your return and get your money back
Given our partnerships with official bodies like BSE and MF Central, you can rest assured that your data is handled with care and industry-grade security standards.
The best part is, it works for more than just mutual funds. It also tracks TDS from:
- Fixed deposits in NRO accounts
- Rental income
- Indian bank interest
- Dividend income
- Capital gains from property sales
If TDS has been deducted on it, this tool will find it.
And yes, it’s 100% secure and free to use.
Why You Should Act Now
- Tax refund claims are not open forever. You can typically claim a refund only within two assessment years from the end of the financial year in which the TDS was deducted.
For example, if excess TDS was deducted in the financial year 2022–23, you have until March 31, 2025 to claim that refund. After that, it’s gone.
- The longer you delay, the harder it becomes
- Most NRIs are unaware of how much they’ve lost until it’s too late
- Don’t leave your money behind. Use our calculator to check your refund eligibility today! The earlier you know, the more money you can potentially recover.
DTAA Benefits for NRIs and Mutual Funds
Many NRIs come from countries like the US, UK, UAE, and Singapore that have a Double Taxation Avoidance Agreement (DTAA) with India.
However, DTAA rates are not automatically applied. If you don’t submit the correct documents (like TRC, Form 10F), fund houses deduct tax at the default rate.
This is why tracking and claiming your refund is so important.
Final Thoughts
As an NRI, managing investments and taxes across borders is already complicated. But losing money to excess TDS doesn’t have to be part of the story.
If you’ve invested in mutual funds or other income-generating assets in India, it’s worth checking how much tax has been deducted and whether you’re owed a refund.
Our TDS calculator helps you do that with just your PAN and email. It’s fast, free, and secure.
Find out what’s yours. Use the NRI TDS Refund Calculator today.
Take control of your finances and claim what’s rightfully yours.
Frequently Asked Questions (FAQs)
1. What is the TDS rate on mutual fund redemptions for NRIs?
TDS rates for NRIs depend on the type of mutual fund and the holding period:
- Equity Funds:
- Short-term (less than 1 year): 15%
- Long-term (more than 1 year): 10% on gains exceeding ₹1 lakh
- Debt Funds:
- Short-term (less than 3 years): 30%
- Long-term (more than 3 years): 20% with indexation
2. Can NRIs claim a refund if excess TDS is deducted?
Yes. If the deducted TDS is more than your actual tax liability, you can claim a refund by filing an income tax return in India. Our NRI TDS Refund Calculator helps you identify these refunds easily.
3. Is it mandatory for NRIs to file an income tax return in India if TDS has already been deducted?
If TDS has been correctly deducted and your only income in India is from investments, filing is not mandatory. However, if you’re eligible for a refund or have other income sources, it is advisable to file your return.
4. How can NRIs track and claim unclaimed TDS refunds?
You can use the NRI TDS Refund Calculator by entering your PAN and email ID. The tool fetches your TDS data securely from official sources. If you’re eligible for a refund, file your return to claim it.
5. What documents are required to claim DTAA benefits?
To avail DTAA benefits, you’ll need to submit:
- A valid Tax Residency Certificate (TRC) from your country of residence
- Form 10F and other declarations as required by the fund house or bank
6. What is the deadline for claiming a TDS refund?
You can claim a TDS refund within two assessment years from the end of the relevant financial year in which the tax was deducted.
7. Is it safe to use the NRI TDS Refund Calculator?
Yes. The tool only requires your PAN and email ID to securely fetch your TDS data from government-authorized platforms like BSE and MF Central. It does not collect or store sensitive financial information.
8. Can I claim a TDS refund for other income sources like FDs, rent, or bank interest?
Absolutely. The tool tracks TDS deducted from multiple income sources including:
- Mutual fund redemptions
- Fixed deposits in NRO accounts
- Rental income from Indian property
- Interest from Indian bank accounts
- Dividends and more
