How are NRI taxed on capital gains?

 There is no differential taxation rate for resident Indians and NRIs. NRIs must pay Tax on short-term capital gains on debt funds as per the person’s income tax slab and equity funds at a flat rate of 15%. On long-term capital gains on debt funds, they must pay 20% tax with indexation and 10% tax without indexation, and no tax on the sale of long-term equity funds. However, for NRIs, the Tax is deducted at source, while resident Indians must make tax payments as per the advance tax schedule. Also, NRIs who live in countries that do not have a Double Taxation Avoidance Agreement, i.e., DTAA with India, will have to pay taxes both in India and their country.

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