Quick Guide For NRIs While Investing In India
Any mutual funds that is held for less than a year, is called a short term capital asset. When you sell units in equity oriented mutual fund are sold (redeemed) within one year of being held, then you acquire either short term gains or loss. The short term gains are taxed at 15 percent on gain. Thus when you sell off debt ridden mutual fund within a year, then tax is levied under slab rules for individuals.
When units in equity oriented mutual fund are sold off after duration of more than a year, then gain on such units redemption is tax free. In case you sell off debt ridden mutual funds after being held for more than a year, gains are taxable as long term capital gains.
Other Investments:
FIIs and NRIs can also invest their money in securities, treasury bills, listed nonconvertible debentures, bonds and many more. However, there are certain restrictions from Reserve Bank of India like NRI, PIO, QFI, FII.
Read More:
