Regarding applicablity of section 115AD

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This discussion clarifies the applicability of Section 115AD(1)(b)(iii) of the Income Tax Act for non-residents selling equity-oriented mutual funds. It's generally not applicable to ordinary non-resident individuals but rather to specific institutional investors. For standard non-resident individuals, tax on long-term capital gains from such funds is typically calculated under Section 112A.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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01 August 2025 if a person being Non-Resident receives profit on sale of equity oriented mutual fund then such person covered under 115AD(1)(b)(iii)provisio of income tax act,1961 for purpose of tax calculation?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 August 2025 Not if individual. Section 115AD(1)(b)(iii) proviso is not generally applicable to ordinary non-resident individuals; it applies to specific institutional investors.
For regular non-resident individuals, use Section 112A to calculate tax on long-term capital gains from equity-oriented mutual funds.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 September 2025 Good Luck..

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