π’ In a significant development, the Income Tax Appellate Tribunal (ITAT) Mumbai has ruled that Non-Resident Indians (NRIs) are not liable to pay tax in India on capital gains from mutual funds if those gains are already taxable in their country of residence.
β This judgment brings much-needed clarity and relief to the global Indian diaspora investing in India through mutual funds.
π Key Highlights:
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π‘οΈ The ruling emphasized the importance of Double Taxation Avoidance Agreements (DTAA).
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π As per DTAA provisions, India may not have taxing rights if the gains are already taxed in the country where the NRI resides.
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π This sets a positive precedent for NRIs investing in Indian mutual funds from abroad.
π‘ Why It Matters:
NRIs have long been concerned about the tax implications of investing in India, especially on capital gains.
π This ruling could significantly reduce tax burdens and encourage cross-border investments.
π Takeaway for NRIs:
βοΈ Review your DTAA benefits
βοΈ Consult a tax expert before filing returns
βοΈ You might be eligible for a refund if TDS was deducted on such gains
π¬ What are your thoughts on this ruling?
Do you think it will encourage more NRI investments in Indian mutual funds?
