FOR TAX RESIDENTS OF TANZANIA, KENYA, UGANDA, SOUTH AFRICA, SUDAN & ETHIOPIA:
NO CAPITAL GAINS TAX ON SALE OF MUTUAL FUNDS AND BONDS/DEBENTURES IN INDIA UNDER DTAA.
PASS THIS MESSAGE TO ALL YOUR FRIENDS AND RELATIVES IN THE ABOVE COUNTRIES.
Under Article 13 of the DTAA (Double Taxation Avoidance Agreement) with the respective countries, capital gains on sale of Mutual Funds (equity oriented or non equity oriented), either short term or long term and also capital gains on sale of all types of bonds/debentures shall be completely tax free in India for persons who are Tax Residents of any of the above country.
The above interpretation of the DTAA has been confirmed by the following judicial decisions:
1. ITO (IT) 2(1) Mumbai vs. Shri Satish Beharilal Raheja ITA NO.4627/Mum/2009
2. The Dy. Commissioner of Income-tax (International Taxation) Kochi vs. Sri.K.E.Faizal ITA No.423/Coch/2018
It has come to our notice that several NRI based in Africa are unaware of this concession.
Kindly contact us in case of any clarification.
Ashutosh NRI services
A division of Ashutosh Financial Services Pvt. Ltd.
Contact us: +91 70435 93388 / firstname.lastname@example.org
Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.