International mutual funds are considered as debt funds in India. Now with current change in tax rules, debt funds would be taxed at income tax slab rate, irrespective of holding period (meaning no short/long term).
Now most of the NRIs would be falling in Nil or 5% tax rate if they dont have any other major income from India. Then in this case wont it make sense to invest in international mutual funds since there wont be any tax (Nil or 5%) as compared to equity mutual funds?
I am not tax expert so please correct me if I am wrong with my understanding. Thankyou.
(Please change the forum for this post to Income Tax forum. By mistake posted under VAT)
CAclubindia
