Income type guide

Mutual Fund TDS

NRIs face 12.5% LTCG and 20% STCG on equity mutual funds. Some DTAAs exempt capital gains entirely, making this the highest-value DTAA benefit.

How it works

What happens to your mutual funds as an NRI

When NRIs redeem mutual fund units at a gain, AMCs deduct TDS. For equity funds: 12.5% on LTCG (above ₹1.25L) and 20% on STCG. For debt funds: 12.5% on all gains. DTAA can reduce or eliminate this.

12.5%

Default TDS rate

Varies

DTAA rate by country

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Typical savings: ₹0 - ₹1,50,000/year