January 23, 2013 10:07 pm
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
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.
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.
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.
It’ 40000 per month
Your email address will not be published. Required fields are marked *
Please subscribe me to your Email Newsletters
This site uses Akismet to reduce spam. Learn how your comment data is processed.
Download Our FREE Ebook!
Available only for first 100 people today
New here? Create an account