tax question on dividend

Last post 06-27-2007 5:33 AM by rupali. 1 replies.
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  • 05-29-2007 3:43 PM

    tax question on dividend

    Are Dividends and capital gains from mutual funds taxed for NRIs - what are the rules?

    • Post Points: 20
  • 06-27-2007 5:33 AM In reply to

    • rupali
    • Top 75 Contributor
    • Joined on 03-09-2007
    • Hyderabad, India
    • Posts 9
    • Points 175

    Re: tax question on dividend

    Taxation of dividends of mutual fund schemes

    Category Tax rates for
      Individuals Corporates
    Liquid funds 28.3% 28.30%
    Other debt funds 14.20% 22.70%
    Equity funds Nil Nil

    (Surcharge rate and cess have been factored in.)     Rules are same for NRIs. Indian taxation is favourable, its the US taxation which takes the shirt off. But in general my advice would be to stick to growth option, in that case when u sell if held less than year u pay 10% on capital gains, if > 1 year u pay 0% for Equity oriented schemes. US tax rules can be summed by this acronym PFIC.   -Rupali
    • Post Points: 5
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