Home |Tax returns filing |
I am a non-resident Indian (NRI). I do (Systematic Investment Plan)SIPs in six equity mutual fund schemes that amount to INR1.8 lakh a month. I do not have any income in India and every year I get refund for tax deducted at source (TDS) of debt funds. I would like to churn my portfolio (units that have completed 1 year) every year before 31 March and reinvest the amount in same plan before 31 March. Will long-term capital gain tax (LTCG) tax reflect on my 26AS certificate? Can I claim refund as I do not have any income in India?
I am a non-resident Indian (NRI). I do (Systematic Investment Plan)SIPs in six equity mutual fund schemes that amount to INR1.8 lakh a month. I do not have any income in India and every year I get refund for tax deducted at source (TDS) of debt funds. I would like to churn my portfolio (units that have completed 1 year) every year before 31 March and reinvest the amount in same plan before 31 March. Will long-term capital gain tax (LTCG) tax reflect on my 26AS certificate? Can I claim refund as I do not have any income in India?
Share
Subin VR, Chartered Accountant,FCA, DISA (ICAI) 
Answered on November 22,2020
Since you are an NRI and investments had made as the capacity of NRI, TDS will be deducted on each payout to your account. LTCG is exempt upto Rs.1 lakh. You will get refund of TDS, if excess tax had been collected from you. And in your case, the possibility of getting refund is very high, since TDS would be more than 30% and tax rate on LTCG is 10%. All the TDS will be reflected in your form 26AS.
Clap 
11 views
SwaraAnswered on February 10,2020
An individual must file an income tax return in India when her total income exceeds the minimum exemption limit of INR2.5 lakh. This income may have been earned from any source, including income from sale of mutual funds. Till 31 March 2018, income from sale of equity mutual funds held for more than a year is exempt from tax. LTCG tax will have to be paid on sale of equity mutual funds made on or after 1 April 2018, where these were held for more than 1 year. Also note that TDS is not applicable on sale of equity mutual funds, therefore tax on this transaction will not be reflected in your Form 26AS.
Related Questions
- In a case where disputed tax contains qualifying tax arrears as also non-qualifying tax arrears (such as tax arrears relating 10 assessment made in respect of undisclosed foreign income): Whether the assessee is eligible to the Vivad se Vishwas itself? If eligible, whether quantification of disputed tax can exclude/ignore non-qualifying tax arrears?
- My son is an NRI and his tenant has to deduct TDS (Tax Deducted at Source) every month and deposit in the bank. After every quarter, he has to submit Form 27A and 27Q online and then generate Form 16A. Is it possible that I deposit TDS amount as advance tax every month in the bank?
- I hold a PAN (permanent Account Number) and OCI (Overseas Citizenship of India) card and am a current citizen and tax resident of Australia. I am planning to come back to India after retirement. Will my Australian retirement funds which are tax-free in Australia be also tax-free in India, if I decide to become an Indian tax resident in the future?
- Are there exemptions on income for Non-resident Indian (NRI) in respect of Tax returns filing?
- I was an Non-Resident India (NRI) for 6 years (FY2009-10 to FY2014-15). Then, I spent most of the last 2 financial years in India. For tax purposes, I attained Not Ordinarily Resident (NOR) status for two financial years (FY 2015-16 and FY2016-17). What would be the actual count of days that would determine my tax status in India? How will Indian tax authorities consider the taxability of my Dubai salary?
- I am an Indian resident. Can I ask the US firm to deposit the money directly into my India bank account? What will be the interest rates paid to me by the banks in India? Will the US firm be expected to deduct TDS and remit to income-tax department in India and give me proof of such deposit in Form 16. Will I need to charge Goods and Services Tax, (GST) on the earnings and remit to government?
- I was living in Australia for the past 9 years. I have come back to India. I have a job and income in India on which I pay taxes and file tax return. However, for this year, I would not have spent more than 180 days in India. When I file the tax return, will this income be included in my income or can I exclude it for tax purposes?
- I recently got my US green card and I file my Income Tax Returns (ITR) in India regularly. Is it possible to transfer these to a Non-Resident Ordinary (NRO) demat account? Can I sell shares and then transfer the money to an NRO account? Will Foreign Account Tax Compliance Act (FATCA) applicable on this?
- I am a Non-Resident Indian (NRI). I have an NRI account in India, in which I keep my savings. From this account, I transfer a fixed amount every month to a joint account with my wife. Will tax be levied on this savings account? Should I file tax returns?
- My status has been ‘resident Indian’ for last 5 years. Prior to that, I was an NRI and had no income in India. I came back to India and started filing all returns, including a ‘no income’ return for the years I was not a resident. As an NRI, I had savings for which I had created an NRE fixed deposit. Will the fixed deposit plus interest be taxable?
-
- How to check balance in Employees Providence Fund ?
- Pradhan Mantri Shram Yogi Maan-Dhan Yojana
- Pradhan Mantri Ujjwala Yojana
- Pradhan Mantri Matru Vandana Yojana
- Pradhan Mantri Surakshit Matritva Abhiyan
- Pradhan Mantri Mudra Yojana (Mudra Loan)
- Pradhan Mantri Fasal Bima Yojana
- Pradhan Mantri Suraksha Bima Yojana
- Pradhan Mantri Awas Yojana
- Pradhan Mantri Awas Yojana (Gramin)
-
- I am a US citizen. I pay tax on the pension received from India to the US Treasury and submit the IRS form 6166 (Tax Residency Certificate) to the bank in India every year. Till the month of May 2017, it was not deducting tax deducted at source (TDS) from my monthly pension. Suddenly it deducted TDS from my June and July pension. Do I have to avail double taxation relief?
- How to e-Verify your Income Tax Returns?
- I am a returning non-resident Indian (NRI) and my status will be converted to Resident but Not Ordinarily Resident or RNOR) in India. I hold some shares in the US that are not subject to any tax as they were bought from the UAE. Will I have to pay Long-Term Capital Gains (LTCG) tax on these shares once I am back to India? If I have to, I would prefer to liquidate those shares and bring the capital with me once I come back to India. Are assets acquired outside India from non-Indian income taxable once I become an ordinary citizen of India?
- I returned to India in 2017 after three years as an NRI. I filed my returns in India during those three years for salary paid in US dollars, and tax abroad. Savings accrued in my NRO/NRE account was converted into domestic account when I returned to resident status. How is the interest earned on the money accrued for 2018-19 be treated? If I had accumulated INR 20 lakh through my NRI earnings, how would this deposit’s interest be treated?
- I have made a mistake while filing IT Returns. Can I make corrections in it ?
- As per the Income-tax Law, gain arising on transfer of capital asset is charged to tax under the head “Capital gains”. What constitutes ‘transfer’ as per Income-tax Law?
- I wish to bequeath an equitable portion of my assets and investments to my daughter who is residing in the US. Do US citizens have to pay inheritance tax or any other tax on the transfer of the value of the assets and investments to her? If so, what options does my daughter have? Can she invest in instruments such as tax-free securities in the US?
- I am a senior citizen and the length of income tax return form 2 or ITR 2 is worrying. Is it necessary for a Non-Resident Indian (NRI) to fill the Schedule of FSI, tax relief (TR), Foreign Assets (FA)?
- What should I do on receiving the notice from income-tax department for the payment of advance tax, if my actual income is more than what is determined by the tax officer?
- Are disputes relating to wealth tax, security transaction tax, commodity transaction tax, and equalization levy covered under Vivad se Vishwas scheme?
-
