Investment Tax
Tax on Investments in India
LTCG, STCG, TDS rates and dividend tax for NRIs investing in equity, MFs, AIFs, and PMS.
Investment Category
LTCG
12.5%
STCG
20%
Holding
12 months
Listed Equity Shares — Finance Act 2024
Key Points
First ₹1.25 Lakh of LTCG per FY is fully exempt
LTCG above ₹1.25L taxed at 12.5% — no indexation from Jul 2024
STCG (held ≤ 12 months) taxed at 20% flat
Dividend income: 20% TDS deducted at source by the company
Section 115E: NRIs may opt for special concessional rates on specified assets
PIS (Portfolio Investment Scheme) account mandatory for secondary market purchases
Next Steps
Open NRE-PIS account to buy listed equity on secondary market
Track holding dates carefully; LTCG kicks in after 12 months
Claim DTAA benefit with Form 10F + TRC to avoid double taxation
File ITR-2 in India to declare capital gains and claim any excess TDS refund
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Rates per Finance Act 2024. Surcharge may apply at higher income levels. Consult a CA.
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