Mutual Fund Investments & Tax Filing (TDS)

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Navo7777 asked 8 years ago

A friend who is NRI invested in Indian MF companies by investing lumpsum in liquid/debt funds and opted daily STP'S throughout the year MF companies have deducted some amount daily tax and sent him a statement he wants to know what is this tax and can he get refund of this amount as he does not have any other income in INDIA.

2 Answers

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Sreekanth Staff answered 8 years ago

Hi, STPs are treated as normal redemptions for taxation purposes. For NRIs, Mutual Fund houses deduct TDS on STPs/Redemptions. elow are the TDS rate applicable on MF redemptions by NRIs for AY 2019-20.

NRI Mutual Fund Redemptions TDS Rates Capital Gains FY 2018-19 AY 2019-20

Kindly read : Mutual Funds Capital Gains Taxation Rules FY 2018-19 (AY 2019-20) | Capital Gains Tax Rates Chart

Navo7777 replied 8 years ago

Thanks but I want to know if this amount can be reclaimed as there is no other Income and the tax slap is 250000 but the person has only this income so can he apply for refund?

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Sreekanth Staff answered 8 years ago

Hi, Yes, can claim it (TDS) as refund (if any) based on the income limit by filing income tax return for the respective Financial Year.

Navo7777 replied 8 years ago

hi!

This amount is accrued as a short term cap gain and it cannot be claimed back.