Taxation for NRI on Stocks, mutual funds and bonds

[Gopi_Kiran]

What is the taxation for NRI clients in stocks trading, F&O trading, mutual funds and bonds?

[Surbhi_Pal]

Hey @Gopi_Kiran,

The taxation for NRI is similar to residents in the case of trading and the above-mentioned investment avenues. Here are a few reads for you that elaborate on the same!

• Income Tax on Equity Share Trading
• Income Tax on Mutual Funds
• Income Tax on F&O Trading
• Income Tax on Bonds & Debentures

[Pri_200892]

Hi @Surbhi_Pal

1. Are there options to reduce/avert LTCG on Equity based Mutual Funds by transferring the redeemed value as a GIFT to a family member ?

2. Can investing the capital gains into REC, PFC, IRFC, and NHAI within 6 months lead to a tax exemption on all capital gains ?

Please share your expert opinion.

[Surbhi_Pal]

Hey @Pri_200892,

With regard to your Queries,

1. Once there is LTCG on mutual funds, the same will be taxable for you even if you transfer the redeemed amount as a gift to a family member.

2. Yes, however, there are certain limitations. You can read in detail about investment in NHAI/REC bonds here!