INDIA
NRI
Yes. TDS is applicable on ETF transactions made by NRIs .
|
Type of Capital Gain | EQUITY /SECTOR SPECIFIC ETF | GOLD ETF | World Indices ETF | DEBT ETF |
|---|---|---|---|---|
|
Long Term (held for more than one year) |
EXEMPT |
20% with Indexation |
20% with Indexation |
20% with Indexation |
|
Short Term (held for less than one Year) |
15% |
As per Income Tax Rate i.e 30% |
As per Income Tax Rate i.e 30% |
As per Income Tax Rate i.e 30% |
|
Education Cess and Higher Education Cess |
3% on Tax Amount |
3% on Tax Amount |
3% on Tax Amount |
3% on Tax Amount |
|
STT |
YES |
NO |
NO |
NO |
1. As per regulatory guidelines, tax, as applicable, has to be deducted at source for profits made in the equity market transactions.
2. Before crediting sales proceeds, the banker must determine the appropriate tax and deduct it at source.
3. The TDS rate varies as per the tenure of the investment. TDS can be classified into long-term capital gain and short-term capital gain.
6. It is to be noted that no TDS is charged on losses.
