• Redeeming mutual funds and transfer money via new account out of India.

I am an NRI wanting to transfer some money that I will redeem from mutual funds to Australia.

I want to know the process for any tax that I will have to pay.
Asked 25 days ago in Capital Gains Tax

- Mutual fund AMC is responsible to deduct TDS on sale of mutual funds. Update your residential status as NRI with the AMC. TDS would be deducted on the sale consideration. Obtain LDC (i.e. lower deduction certificate) and submit to AMC. The process to obtain LDC is entirely online.

- For remittance to Australia, your banker will need Form 15CB,15CA and A2

- To save tax you can invest in residential house property in India. Assuming gain from mutual funds is long term capital gain

 

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4885 Answers
1069 Consultations

5.0 on 5.0

You need to file the income tax return and there by paying taxes if you are exceeding the limit 

Vidya Jain
CA, Kolkata
1015 Answers
58 Consultations

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Steps for NRIs Redeeming Mutual Funds and Transferring Money to Australia

  1. Update Residential Status with AMC

    • Inform your AMC about your NRI status.
    • TDS will be deducted on mutual fund redemptions.

  2. Obtain Lower Deduction Certificate (LDC)

    • Apply online for an LDC to reduce TDS.
    • Submit the LDC to your AMC.

  3. Required Forms for Remittance


    • Form 15CB: CA certificate confirming tax payment/deduction.

    • Form 15CA: Declaration of remittance, submitted online.

    • Form A2: Request form for bank remittance.

  4. Tax Considerations and Savings

    • For long-term capital gains, consider investing in residential property in India to save taxes.
    • File your income tax return in India to declare income and pay applicable taxes.

  5. Limits and Compliance

    • Ensure timely tax return filing.
    • Keep all documents (LDC, Form 15CB, 15CA, Form A2) for compliance.

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
269 Answers
4 Consultations

5.0 on 5.0

You can transfer 1mn $. If you have invested as an NRI from your foreign income then your TDS will be automatically deducted by the mutual fund house and you can ask bank to repatriate the money, however, they might ask for certificate from CA.

 

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Thank you.

Naman Maloo
CA, Jaipur
4288 Answers
98 Consultations

5.0 on 5.0

Hi

 

Selling will attract capital gain and tax liability if any on the amount.

 

Remitting fund back to Australia is possible either through NRO / NRE account balance or proceeding of mutual fund sale

 

It is allowed under LRS upto 250000 USD in a financial year. However any amount in excess of 7.5 lacs in single year will attract TCS @20% which will be available as refund when you file your return and disclose total income

Vishrut Rajesh Shah
CA, Ahmedabad
933 Answers
39 Consultations

5.0 on 5.0

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