Will mutual fund investment in india attract tax in US

POSTED BY KUNAL GERA ON January 23, 2013 10:07 pm COMMENTS (4)


I am investing 40000 in different mutual funds and will be going to US soon.  Just curious will I need to pay tax in US for these returns

4 replies on this article “Will mutual fund investment in india attract tax in US”

  1. KUNAL GERA says:


    I have referred to two links:

    1) http://insight.banyanfa.com/tax-implications-of-mutual-funds-on-residents-and-nris/, they are saying I won’t need to pay tax, until I sell my investments.

    2) http://articles.economictimes.indiatimes.com/2012-04-27/news/31411531_1_mutual-funds-long-term-capital-gains-capital-appreciation/2. This link suggesting otherwise.

    I am going to US on H1 for long term and want to continue my SIPs for long term, but there is no use if I am taxed this much.

    Can you please confirm if I would need to pay tax even if I dont book gains. If yes then there is no point in continuing SIPs.

  2. Dear Kunal, a shock for you, once you are in US of A, your global income ‘ll become taxable. Interestingly even not booked gains ‘ll also become taxable. Please contact Dear BanyanFA here in the forum for exact details as he is the one who is also dealing so many NRI clients & specially from US of A.



  3. Answer depends on your status in the US. For example there will be TDS in mutual fund returns for NRIs

    For example for short term equity capital gain NRI pays 15% TDS here and

    30%-15% tax in US

    (30% is the rate in US). Due to a treaty NRIs are not taxed twice and pay the difference.

  4. KUNAL GERA says:

    It’ 40000 per month

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