Good News For NRIs - Capital Gains Tax Exemption On Sale Of Mutual Fund Units In India.
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- Опубликовано: 10 окт 2022
- #nri #nrimoneyclinic #financialplanning
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Nice information explained in simpler lingo. Very useful. My regards.
Excellent video
Questions are like from layman perspective
Answers are thoroughly explained
By far the best and articulated in a way that a novice can understand given that tax code could be extremely complex. Kudos to both , I subscribed and liked as a part of my gratitude 🎉
Other than claiming reduced taxation in bank on nro.. other tax claims are complicated process.. MF apply TDS irrespective of your status.. very few CAs are inclined to look in to DTAA n try to save on CG.. it is not clear DTAA could save 100% tax both on stcg n ltcg.. nevertheless a useful video to further explore with CAs
Great video..wonderful info.. salute to both of u
This is so easy to understand and explained in simple language. Subscribed. looking forward to more of your videos.
Simple and excellent presentation
Thanks for the crystal clear explanation. Questions put up are done I such a good manner that it is easily understood by general public. Any idea as to what is the cost of tax residency certificate in U.A.E. (as mentioned if the benefit does not outweigh the cost then no purpose in getting the certificate)
excellent video!!! everything is explained in details and step by step, Thank you both of you😊
Very useful piece of info now that I’m filing tax in my host country.
Thank you 🙏🙏
Excellent quite informative ..
Excellent Session 😀
Thank you for your wisdom
Your videos gives all answers for my queries
This is mind blowing. Unbelievable . Thanks a million .
People say death and taxes cannot be avoided. With your help we are avoiding taxes .kindly make a video on how to avoid death . 😂
Probably you should book an avatar on Meta,. Also dont forget to save your cells safe to take a reincarnation whenever technology permits
Thank you for this. Very informative. Can you please advice, how the capital gains will be calculated on foreign equity or mutual fund for a returning NRI, who files his returns as a Resident in India. To be specific, what will be his purchase price? Will it be his actual purchase price or the price on the date he became a Resident Indian? Thanks.
Well i have a query, lets say i have bought some shares and MF including SIP all bought thru NRE account, upon redemption or sale of shares or MF will the gains go back to NRE a/c after respective TDS?
Some banks are recommending me to take up and invest in SIPs/ULIPS and shares and the gains will go back to NRE a/c (source)...kindly advise..
Have a few queries. Does this exemption apply to Capital Gain on sale of shares? Does it apply only on Long term Capital Gain on sale of shares/MF? Am I correct in assuming that TRC has to be applied during the April to June of next FY for claiming TRC of previous FY for which you are filing returns,? Further in the online ITR forms (ITR 2 in my case as I am a Non Resident based out of Oman), the LTCG is auto populated and TDS is already deducted when I sell shares/MF. How do I get the refund in that case while filing the return?
They mentioned shares in the 4 types on investment which are taxed at source or generation. So here in India.
Good information to be aware of thanks.
Very good video 👍👍
good to know more about DTAA. Always worth watching your channel
Is under DTAA ,Capital gain exemption available for mutual funds bought from NRO account also.
In my opinion Trading in futures and options regardless if they are traded intra-day or in deliveries is always treated as business income and not a speculative income. Please confirm it.
I differ… you can check definition of speculative income u/s 43(5) and exception/exclusion therein…
Hi - just wanted to ask if some money from nre account is send to wife account who is housewife and she does trading and get profit too is that taxable and how can I understand this situation.
Aren't equity mutual funds same as shares of Indian companies ?
Thanks for the very informative presentation. Just one question to avail MF capital gain tax exception, TRC certificate issue date to be after completion of current financial year where the exception to be claimed? or date can be same financial year date.
It should be applicable for the relavant financial year
Questions and Answer very clear and useful to many NRIs
I am in uae aged 61 retiring april23..UAE visa will be canceled. Without TRC any sale of shares and mutual funds holding in NRE staus after April23 can I claim back IT deductions by filing returns in 2023..24 with assumptions overall tax payment is nil. As of now negligible income in India ..great full if you clarify hope useful to many retiring persons
Thank you so much
NREs are not allowed to do Intra day in equity market! Only Futures and Options is allowed that too through NRO Demat account only. Kindly confirm if this is true.
Sir,
Thank you for posting these videos. Very helpful.
Are there any different implications for overseas citizens of India. Basically people who have acquired foreign citizenship and become OCIs. How is tax burden for OCIs? Please enlighten us.
The rule would remain the same for OCI's & Foreign nationals also...
Another wonderful piece as always. Really loved it. Please make a video on, "If Indian resident leaving India for the first time for employment outside India and if he stayed in India for more than 182 days in that year, global income will be taxable. How to structure the salary from outside India in the first year ?"
This video is already available on this channel
@@NRIMoneyClinic I've gone through the videos earlier, do's & don't under multiple law is explained. However taxation of Salary in the first year (Where he'll not be NRI rather he'll be a resident if he leaves India after October) is not explained yet. If right, please make a video on the same.
Check out for a video called who is NRI . In that video , specific case of people going out for employment is explained.
@@NRIMoneyClinic In the same video, Residential Status is explained, however structuring / planning for tax purpose is not explained.
2 questions1) Malaysia does not tax income earned from foreign sources. So does that mean no tax is payable in valid groups. 2) if non working spouse has no TRC, are they exempt from this process?
1) yes, most likely
2) no…
Thanks for video. So, if I understood correctly, the long term & short term gains on mutual funds are not taxable in India any more? While it used to be taxed in india before ? Thanks for clarifying. In my case, I’ve switched some mutual funds in mar 2021, there are some gains from them & haven’t filed the taxes. They are under the limit of tax bracket though 2.5 lacs.. so, where the taxes on them should be paid ? There is DTAA agreement between residing country & India though
Please consult a chartered accountant on this issue
@@NRIMoneyClinic Explanation in the video is clear but the question remains unanswered 😞 " If I understood correctly, the long term & short term gains on mutual funds are not taxable in India any more? While it used to be taxed in india before ? "
@@rahulvarma2100 Capital Gains are always taxable, now also... however for in eligible cases, there can be a exemption which is claimed by doing necessary compliances...
What about the exchange loss deduction?
hello
my Question is are the profits from capital markets in NRO non-PIS account also repatriable ? Given the fact that it is within 1million USD limit. I am asking this question because the NRI demat account says that NRO non-PIS accounts are non-repatriable, but if i pay the taxes then and follow 15CA and 15CB then can the money be repatriated?
This is crucial info. Pls share income tax links to corroborate your claims!!
Just do a Google search for details of DTAA between India and country where you live now
Nice info and thanks. I have 2 queries. 1. is there any timeline period to re-invest after selling the property by NRI in India. 2. can we invest back again on land? if yes, then is construction mandatory on that land?
For an NRO non PIS account STCG TDS is deducted,Is it possible to get it back if I file tax retruns as my income from India is below 1 lakh?
Thank you for the awesome video. By the way, can you speak little slowly? Sometimes the words are swallowed because the guest is speaking too fast. Just a suggestion :)
Suggestion well noted and accepted…
Thank you very much for the feedback. Will keep it in mind
Thank you so much sirs. How can we contact Mr. Sriram?
His email ID is in the video . You can reach him via email
If i am OCI holder and living in india forever then how my capital gains will be charged if i sale my Mutual funds & Shares? I
I have one question here, I am a non-resident for tax purposes, and I am having NRE account. I am depositing money into my NRE account from my bank here overseas. Now some other companies also deposit money into my NRE account for which I have provided my professional service here in overseas, which is apart from my regular job.
Now, is that questionable that 2 different deposits are made, one from myself from my bank account overseas and another from another company?
Is there any issue here? What are the tax implications if any?
Also, I have paid up my home loan using this amount in India by transferring this money from NRE to NRO account. Is there any issue with that?
One more question, do Banks report each and every transaction made into the NRE account to the Income Tax Department of India?
A fantastic video sir .. will save lakhs of rupees for NRI’s investing in mutual funds . Kindly answer a few questions
1 . Is it applicable to both equity and debt funds ?
2 . If i have invested in mutual funds when i was an NRI and redeem it after retirement when i become resident can I still avoid paying capital gains tax ?
1yes. 2 . NO
Another video mentioned that seller can purchase section 54EC NHAI bonds or other central govt bonds for 5 years. Is this a valid strategy to avoid capital gains tax?
Yes of course… 54EC applies only when an immovable property is sold and not otherwise
Do we need to pay capital gains tax on the property sold which is received in inheritance. If yes, then how much isit ?
Yes, please consult your chartered accountant
Now only investment for NRI where there is no capital gain tax is NRE FD in banks
how much interest rate approx sir
No sir . Fd in nre account is taxable in your resident country where you are living and earning .
NRE FD is absolutely tax free in India. Why you should disclose NRE FDs in another country? Already NRE money gets taxed at source, so DTAA gets into picture. 😊
@@naerampokku7-8℅
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US Citizen having OCI and NRO ac in India ,while receiving closure proceed of S/A or FD as nominee upon death of her /his parents of India national. CGT shall be applicable ?
Thanks a lot to both of you for sharing these details on DTT benefits.
What are the best possible ways for NRI’s (foreign passport holders) to invest or trade in India but get full tax exemption?
Similar to the way what we get for NRI-FD Returns
I understand it is possible by registering it as a FII in anyone country (ex., Dubai) but i may not such huge corpse to invest
So what could be the best possible way to handle such scenario
Though it sounds advantagous to provide TRC and a avail tax exemption in india, do NRI need to declare the capital gains generated in india in the resident country (lets say Singapore) and pay tax?
Yes, it is required and if that country exempts it, then one is not required to pay tax there
@@sriramrao2514 Specifically for Singapore - are Mutual Funds exempted from both STCG and LTCG tax by the DTAA Article 13?
Sir,I want to know about the taxation in equity mutual funds for NRI. i just watched your vedio. But still I have some confusion
If i invest 1 lack in a equity mutual fund and then i redeem it after 5 years at 3 lakhs value now, how much will be long term tax and tds and how much will i get in my account finally
Also kindly elaborate what is:
1. Appicable surcharge
2. Applicable cess
3. Tds
In your vedio you have mentioned approx 11.96% is the tax including surcharge and cess. In this 11.96% tds is included or not?
How much will be the tds amount?
What about México? Has India Dual Taxation avoidance agreement with Mexico or not?
Yes
Bahrain today doesn't have dta with India but suppose an NRI purchased MF while staying in BH and later moved to Oman or UAE where he sold those MF in that case he can claim the exemption?
His tax residency status at the time of sale of units are to be considered. To answer your question , answer is YES
How about Indonesia sir
what about NRE's
Please let me know. After conversion of sb ac to NRO,How the Local sb account fds are treated? They are called NRO fds? Thx Sr
All accounts including FD’s also needs to be converted to NRO
Many thanks for the info provided. I am an NRI residing in germany and recently I got a tax letter that I need to declare Capital gains from interest I have received in NRE account , this is normal SB interest which is tax free in India , and later when declared they applied 26.5 % flat tax , my question is what does the DTAA say be India and germany ? Is there any self read material , and do you support tax filing in germany ?
Your query is confusing. You need to follow tax rules of country of which you are a citizen as well the country where you are residing now
@@NRIMoneyClinic sir let me clarify my query again .. I am a Indian citizen residing and earning in Germany and also file my tax returns in Germany. I repatriate money from germany to India into my NRE account regularly.
and banks deposit a quarterly interest rate on my account at the rate of 4% , and my understanding is that this is tax free in India. Now here in germany I had not declared this quarterly interest amount gained in my NRE account.
Recently I got a letter here in Germany where they told me that according to DTAA agreement I need to declare that money of interest gained as capital gains from foreign country and had to pay 26.5% tax, so my question is if this was the right way that germany obliged me to declare and collect taxes for the income which is tax free in India
Refer to DTAA between India and Germany. Consult your tax consultant in Germany. Interest from NRE account is income and not capital gains
@@NRIMoneyClinic hello sir, that’s where the problem comes that these tax consultants in germany don’t understand how the DTAA works between germany and India, or at least that this the impression I had that they could not explain me,it would be great if you can refer me to someone if you know , many thx
Good piece of information. But there are some ambiguity
1. In India FY is from Apr to Mar. But in UAE it is from JAN to DEC. When to get the TRC to avail this exemption? Within Jan-Mar and/or Apr-Dec?
2. If you get TRC in Apr-Dec then can one get exemption for the FY which got ended in Mar ? Also can the same TRC be used for FY ending next year March?
3. How is this case treated? Suppose a person has been investing for years while he was not an NRI. When he becomes NRI and redeem the units, can he get the exemption with TRC for such capital gains?
In the same line if an NRI invested during NRI days and when he returns to India and then redeems the units. Then will he be eligible for tax exemption?
Good information. Thanks for your service...
I have few doubt
1. Singapore FY is Jan-Dec, they can issue COR as per their FY only. Is it ok?
2. When and to whom I should submit COR?
Can I submit and get excluded from TDS ?
In India NRE savings account intrest FD or Normal saving intrest is not taxed, then why the Debt mutual funds OR Equity MF are taxed which are done via NRE accounts ? Please help if the tax applied can be saved.
Because, as per Income Tax Act, interest earned from NRE are specifically exempt u/s 10(4)(ii)….. However, incomes from MF’s are earned in India & not specifically exempted… that’s why it is taxable
TRC possible from saudi arabia. What about nri who are not resident holders of Saudi but go on business or work visa.
Strange to see that mutual funds are exempted from capital gain tax as per DTAA with gulf countries. However, TDS is deducted automatically when redeeming the funds. Similarly, MF investments in MF are equivalent to investments in shares/ equity (if its a equity MF and not debt MF). Can you please clarify this??
equity & MF's are two different investment instruments and are not having much similarity (Ex: equity will give partial ownership of company whereas MF does not give such rights)... Even the taxation rules are different.. that's why they rules are different for both...
Dear Sri Ram,
Do you have any idea how much a TRC in UAE will cost?
What about Australia whether we DTA or not.
It is answered in the video
You don't have to be a tax resident of any country IF your taxable income is below 15 lakhs. But you won't get TRC benefits like dividends, interest or capital gains.
Thanks for making video on this topic. But this is half information. If you avail tax exemption in India then you have to pay tax in your residence country according to individual’s tax slab. In India we have 10-15% capital gain tax but in most developed countries India Capital gains are added in your total income which is not in favor of tax payer. So it is better to pay capital gain in India & pay difference of tax in your resident country.
do you know if we have to pay tax on interest earned on lets say LIC or EPF or PPF yearly in the resident country OR only when we get the money in our NRO account upon maturity?
@@DevendraGuptaProfile As per rule you are expected to pay tax on notional gain as well (typically interest earn on long term deposits, PPF etc). But if not done then you need pay tax on maturity. Again catch here is, you are expected to pay tax on interest earn after you become NRI (or tax resident of foreign country). Regarding EPF, I am not fully aware as I got my EPF when I become NRI.
@@rajeevr5665 Many Thanks 🙏
If NRI have property in India, do they have to pay tax in the US for income from the property
You need to consult your CPA in US on this issue
By submitting TRC obtained from UAE, will all types of capital gain (STCG and LTCG in MF) be refunded upon filing of income tax return irrespective of any threshold? does this mean NRI's living in Income tax Free countries, can avoid paying capital gain on MF completely? Please clarify. Thank you
Watch the video and it is an authentic information
For more on it , consult a chartered accountant
does it mean that if you sell inherited property -you can avail tax benefit in India by putting into govt bonds for 3 years and then repatriate that money out without being taxed again in Australia?
This question is not relevant here… however when you mentioned property, if you meant immovable property, then there image already videos on sale of immovable property… you can watch them and be guided
@@sriramrao2514 referring to 7:30-11 part of your video. So my Q is if India allows tax free returns in govt bonds, can that also be exempted in Australia? Because tax is meant to be paid in india-and if India allows tax free returns, Australia should not charge either?
@@sdesai-venyagifts4217 No it will not work that way. exemption from taxes would be available in one of the country. DTAA is available to avoid double taxation of same income and not to provide complete exemption. Watch the video fully and also there other video's on DTAA & understand the concept comprehensively... moreover, there is no tax exemption available for NRI who are resident of Australia... its available for NRI's who are resident of some of the other countries....
I am NRI living in USA, and selling my property in India. Will I have to pay Capital gains in India OR can I pay in USA my country of residence?
You have to pay 20% plus cess and surcharge tax in india..or you can invest the proceed in another house property or purchase 54EC bonds upto 50 lakh and save the capital gain tax
Hi Sir , I'm UK citizen and OCI holder. Investing stock and mf fund in the india through my NRE account and as an NRI (join account with my wife).
However Recently i have sold lots my mutual fund to invest direct equity while which transection Redeem and STP Axis mutual fund deducted 10.4%@TDS . If NRI need pay in home country for MF why they deduct TDS? How can refund as it's gone beyond 2 lakhs this years
You need to pay taxes in India. You must file tax returns in India . You can claim exemption under DTAA provisions in UK
This video could have been made so much simpler to understand. I may as well just read the IT Act and all the DTAAs.
Please suggest how we could have simplified ? We will definitely keep your suggestions in mind in future episodes . Please give us step by step guidance
@@NRIMoneyClinic
With due respect, and with your permission:
This video title shows a very specific matter. Please keep the video short, and addressing only that specific point. And please avoid all the legal jargon.
While otherwise it is a fantastic video which covers a large number of points, it is going into many other very basic details of Capital Gains. If someone does not know what capital gains is, then its too early for him to discuss exemption.
I got tired somewhere mid way when I kept hearing information that I already know very well, and skipped the remainder of the video. People these days are forced to lead extremely buy lives, and not many would have the time to see a 28 minute video and search within the video just the one specific point that they want to know about.
@kunal shah , thank you very much for your feedback. Points well noted. Respectfully yours
DOES TRC CAN AVAIL FROM UAE
Yes
I am somewhat baffled and need a clarification:
A NRI residing in USA sells NRE mutual fund materilizig short/long term capital gain. Is this individual required to declare + pay taxes in India?
Yes
What about tax on Stocks 🙁
It is explained in the video
Sir any other option for bahrain residents ppl.
No option as of now,
But India is a country of many leeways. You got many tax consultants who can even convert your resident account money to NRE account. I have seen many NRIs bypass capital gains without any problem.
It is not the middle east, it is West Asia. I do not understand why we refer West to as East.
So according to Indian tax law there is no. Good news..😮 because for mutual fund capital gain in India NRI must pay tax in the country of your residence which there is has DTAA (double taxation avoidance agreement)? Or provide proof of tax filing in country of residence to indian Tax authorities 😮
If the NRI don’t have any income in India then one can take benefit of international mutual fund investing.
If you invest in international mutual fund then capital gain till 3 years are regarded as Short term gain , I.e gain will be added to your income and tax is applicable as per income tax bracket. So 2.5 lac of short term capital gain are tax free
Dont understand what is the Good news
Mee too. I donot understand what are the good news !!!😢
Explanation is too detailed and the main issue is lost somewhere. Point to improve. Tiring to watch.
Feedback noted . Thank you
I didn't see any advantage of not getting taxed here on gains from mf holding. If u pay taxes here u get tax credit in country of residence. Otherwise you are anyway going to pay tax there in res. Country.
It's not good news for all resident countries, take an example i pay 50% tax , it's better for me to pay in India
I think u must speak in Hindi and understand everyone
how come an Indian can be a resident in UAE????? I think Mr Rao has no idea of it
Residential status is different than citizenship… I think you have interchanged these words
@@sriramrao2514 lol these questions are a result of poor education.
Thanks for the video. The DTAA provisions in respect of USA and India are not explained clearly. If you could provide a video explaining these provisions and available tax benefits, especially for US residents and OCI card holders for the income and capital gains earned in India, it's highly appreciated.
Its been explained clearly, you might have missed it... India-US DTAA states that capital gains earned in a country would be liable to tax in that country as per its domestic law... Means DTAA does not give any benefit...
under DTAA with Singapore can NRI get capital gain exception on property sale?
Watch the full video, it’s answered
I did, if I understood correctly.. property sale capital gain is not exempted in spite providing TRC?
That is correct
While I am thankful to the presenter and the channel for making this video. But at the same time, I like to warn every NRIs about current dubious Indian government and policies. Repatriation of money from India to any foreign country was always costly and complicated. Although after 2016 the bank related RED tape is all time high, the bank/KYC related rules are continuous changing and impossible to follow for someone living outside India.
When its comes to withdrawing money from Indian bank (specially government bank), forget about NRI, even Indian citizens are having hard time. My parents and every senior member of my family were harassed every 3-6 months with frozen accounts, just because they are not online users. Before 2014 without court approval no bank could freeze any account. But now it's legal for banks to freeze any bank account including senior citizens without any court order. Death of democracy.
Final nail in coffin, most of the banks in India are government banks. and they will never provide paperwork on time, especially the extra info for NRO/NRE/other accounts to file foreign tax. So, in case of conflict there will be court case as "you vs government of India, where no citizens (Indian or NRI) ever going to get justice.
Nri means not English language. please speak in hindi.
WRONG NUMBER IS DISPLAYED
To add, USA and Canada tax your global income. So even if you are not paying any tax on LTCG in India on MFs, you need to pay it in these countries if you are NRI over there. DTAA covers non residents where as most NRIs in these countries fall under Resident category and hence can't avoid these taxes. This is my understanding.
Not only US & Canada… many other countries have same law
@@sriramrao2514 thank you for your response. Is there any way to save such taxes in respective countries since there is exemption in India but not in respective countries.
@@vinay108322 you need to check with tax consultant in that respective country
Sir, I am right a resident of Singapore. I plan to retire in India.
1) My monthly dividend paying income in Singapore. Will it be taxable in India during my retirement in India?
2) My property in Singapore, if I sell it after I retire in India, will there be taxes in India.
If you don't give examples while talking about i laws... It's Greek to many sorry
Your feedback is appreciated
Call it a double taxation relief. Not capital gains tax exemption. That's a click bait