Relief claim by NRI
This query is : Resolved
03 July 2025
Sir
How to claim relief on LTCG tax on sale of MF income fy 24-25?
He has to submit form 10F before filling his income tax return??
Which documents are required and upload while filling his tax return??
He has TRC for fy 24-25??
Please guide me.
How to claim relief on LTCG tax on sale of MF income fy 24-25?
He has to submit form 10F before filling his income tax return??
Which documents are required and upload while filling his tax return??
He has TRC for fy 24-25??
Please guide me.
10 July 2025
LTCG is a special rate tax . Is tax on same also deducted in foreign country of ressidence.
Assuming country of ressidence is US where Global income is taxed and this transaction is taxed there better to claim relief there by submitting ITR copy of INDIA
Assuming country of ressidence is US where Global income is taxed and this transaction is taxed there better to claim relief there by submitting ITR copy of INDIA
10 July 2025
Can't understand.
In my cases assesse is from UAE and his income from MF and he has TRC gor the fy 24-25 and tds deducted of Rs. 3 lacs.
How to claim relief and get refund of Rs.3 lacs??
LTCG from MF is exempted from tax in india.
He as yo show his income of UAE in Indian ITR while claiming relief??
In my cases assesse is from UAE and his income from MF and he has TRC gor the fy 24-25 and tds deducted of Rs. 3 lacs.
How to claim relief and get refund of Rs.3 lacs??
LTCG from MF is exempted from tax in india.
He as yo show his income of UAE in Indian ITR while claiming relief??
12 August 2025
1. Is LTCG on Mutual Funds Taxable for NRI?
Long Term Capital Gains (LTCG) on equity mutual funds exceeding Rs. 1 lakh in a financial year are taxable in India at 10% without indexation.
Debt mutual funds LTCG is taxable at normal slab rates or 20% with indexation.
LTCG on equity funds is not exempt for NRIs unless covered under a Double Taxation Avoidance Agreement (DTAA).
2. DTAA Relief and TDS Refund
India and UAE have a DTAA, which can be used to avoid double taxation.
The NRI has paid TDS of Rs. 3 lakhs in India.
If tax is paid in UAE on the same income, relief can be claimed under Section 90/91 of the Income Tax Act by filing Indian ITR.
The client needs to submit Form 10F and Tax Residency Certificate (TRC) of UAE for FY 24-25 to claim DTAA relief.
3. Documents Required
Form 10F: Declaration regarding residential status and other details (mandatory for DTAA relief).
Tax Residency Certificate (TRC) for FY 24-25 issued by UAE tax authorities.
Proof of tax deducted (TDS certificate / Form 16A) in India.
Proof of tax paid in UAE (if any).
4. Procedure to Claim Relief
While filing ITR, disclose income from mutual funds (LTCG) under capital gains.
Claim relief under DTAA (Section 90/90A) by furnishing TRC and Form 10F.
If tax is paid in UAE on this income, claim foreign tax credit (FTC) to avoid double taxation.
Show foreign income in Schedule FSI (Foreign Source Income) in the ITR, even if exempt in India.
Provide all required documents as proof of residence and tax paid abroad.
5. Refund of TDS
After filing ITR with correct details and claiming relief, if TDS deducted is more than the tax liability, refund can be claimed.
Refund process will be initiated by the Income Tax Department after assessment.
6. Key Points
Even if LTCG on MF is exempted in India under some circumstances, NRIs should carefully check their DTAA provisions.
Filing ITR is mandatory to claim refund and relief.
Form 10F and TRC are essential supporting documents for DTAA relief.
Disclose income correctly under capital gains and foreign income.
Long Term Capital Gains (LTCG) on equity mutual funds exceeding Rs. 1 lakh in a financial year are taxable in India at 10% without indexation.
Debt mutual funds LTCG is taxable at normal slab rates or 20% with indexation.
LTCG on equity funds is not exempt for NRIs unless covered under a Double Taxation Avoidance Agreement (DTAA).
2. DTAA Relief and TDS Refund
India and UAE have a DTAA, which can be used to avoid double taxation.
The NRI has paid TDS of Rs. 3 lakhs in India.
If tax is paid in UAE on the same income, relief can be claimed under Section 90/91 of the Income Tax Act by filing Indian ITR.
The client needs to submit Form 10F and Tax Residency Certificate (TRC) of UAE for FY 24-25 to claim DTAA relief.
3. Documents Required
Form 10F: Declaration regarding residential status and other details (mandatory for DTAA relief).
Tax Residency Certificate (TRC) for FY 24-25 issued by UAE tax authorities.
Proof of tax deducted (TDS certificate / Form 16A) in India.
Proof of tax paid in UAE (if any).
4. Procedure to Claim Relief
While filing ITR, disclose income from mutual funds (LTCG) under capital gains.
Claim relief under DTAA (Section 90/90A) by furnishing TRC and Form 10F.
If tax is paid in UAE on this income, claim foreign tax credit (FTC) to avoid double taxation.
Show foreign income in Schedule FSI (Foreign Source Income) in the ITR, even if exempt in India.
Provide all required documents as proof of residence and tax paid abroad.
5. Refund of TDS
After filing ITR with correct details and claiming relief, if TDS deducted is more than the tax liability, refund can be claimed.
Refund process will be initiated by the Income Tax Department after assessment.
6. Key Points
Even if LTCG on MF is exempted in India under some circumstances, NRIs should carefully check their DTAA provisions.
Filing ITR is mandatory to claim refund and relief.
Form 10F and TRC are essential supporting documents for DTAA relief.
Disclose income correctly under capital gains and foreign income.
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