Posted On
5/30/2023
2:59:50 PM
by
The Kay
No you won''t get any benefit for tax residency certificate from Kuwait.
You have to pay long-term capital gains tax of 10% if the gain exceeds 1 lac + Cess around 3-4% on the tax amount.
Since you can''t claim any tax benefit from Kuwait, your income tax slab should remain the same.
You have not mentioned what kind of equity funds you hold, and how long you have been holding them. Better talk to a financial advisor or tax consultant it might cost you 5-15k. But helps you in optimizing your returns after paying taxes.
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Posted On
5/31/2023
8:36:20 AM
by
Well Wisher
Thanks Kay for the reply. We are holding large cap, mid cap, small cap, hybrid, flexicap funds, and holding period has been from 4-7 years. I was watching this show on ET now, https://www.youtube.com/watch?v=lh4HX4M1L1c&t=217s in which the guest was talking about the DTAA between Dubai and India. I believe a similar treaty exists between Kuwait and India ? here in the transcript of the show 3:43 since you''re a Dubai resident uh there 3:45 is also a dual taxation treaty between 3:47 India and the UAE which makes mutual 3:50 funds uh tax-free for a Dubai resident 3:53 uh so if you take a TRC which is nothing 3:55 but the tax residency certificate you''ll 3:57 have to go to the uh Emirates IDs and 3:59 you have to go to those Emirates office 4:01 and take a TRC for yourself uh it has 4:03 someone like would be cost per a certain 4:06 period uh then your mutual funds in 4:08 India become tax-free and even the TDS 4:10 deduction uh becomes exempt to you so 4:13 that''s one thing which I want you to 4:15 keep in mind because that''s a huge
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Posted On
5/31/2023
9:55:59 AM
by
The Kay
DTAA means Dual Tax Avoidance Agreement, which means you do not have to pay taxes in two countries if you invest in India and reside in a foreign country.
GCC countries do not have personal income taxes, it is more for a Company/Business.
So based on the DTAA treaty between UAE and India, Indian-origin residents in UAE have to pay taxes in India for the income generated in India and do not have to pay any taxes for the income generated in UAE be it salary or rent. Because there are no personal taxes in UAE.
Let me put a scenario it may help you to understand better. Imagine if you were in US or Canada, and you earn monthly income and also you have investments in India and you those are taxed in India according to Income Tax laws. For the income generated in US you will be paying tax in US, now you don''t have to pay tax again in India when you file tax returns. Same way for the income generated in India you will pay taxes in India and file your returns, and you don''t have to pay tax again in US for the returns in India. Instead of paying taxes twice for the income generated in each country, you will pay it in the country of income origin or depending on the treaty between the two governments. Hope this helps you to understand how DTAA works.
https://www.amfiindia.com/investor-corner/knowledge-center/tax-corner.html
The above website should help you with mutual fund taxation in India. TDS can be claimed once you file IT returns in India.
I understand all your funds are Equity funds and no debt funds, and not sure whether they are growth or IDCW funds.
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Posted On
6/1/2023
10:05:13 AM
by
Well Wisher
Thanks Kay for your kind reply.
Doesnt the DTAA give you the allowance of saving your tax irrespective of whether UAE/Kuwait impose a tax on your income. ?
The MF''s that we hold are Growth and not Dividend., there are some Debt+Equity schemes, but no Debt only schemes.
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Posted On
6/1/2023
1:22:47 PM
by
The Kay
The whole objective of DTAA is tax saving, instead of paying tax twice in two countries you pay it in only one place.
When there is no Tax in UAE/Kuwait (you pay zero), there is no question of tax saving as you are paying nothing in these countries.
You are only paying tax in India for the income generated in India
I can understand your situation but there is no way to avoid these taxes, also file IT returns to claim TDS (Tax Deducted at source) when you redeem the funds.
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Posted On
7/14/2023
2:22:28 PM
by
J Fdes
FYI TRC fees are 50 KWD now plus 5 KWD for MOI stamping so if its minor income its better to pay the tax
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Posted On
7/16/2023
8:56:31 AM
by
Reynbo
I have stuck with redemption issue. I have had opened 6 mutual funds (different AMC) through Kuvera App and while adding my resident status to Indian, instead of NRI- Non repartriable. I have linked my NRI account to all my AMCs. Now since the residence status is Indian, I am unable to redempt the amount as the account is NRI. Can anyone help me to fix my residence status in all AMCs?
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