How are foreign ETFs listed on NSE are taxed?

Taxation
1

Currently NSE has 2 ETFs listed which tracks Nasdaq and Hangseng. I can find information on gold and normal Indian index ETFs but these foreign ETFs are confusing as they have international exposure.

How are these ETFs taxed? Do they follow taxation rules of international funds or are they treated as other equity index ETFs which have 0 long term capital gains tax?

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2

The Income will be added to normal income and tax will be paid as per slab applicable

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@TAXIQ.IN For short term or long term? And what is the duration for short term?

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These ETF for taxation works as a Mutual funds , the holding period is one year if Equity linked.

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Correction:

Gold ETFs and International ETFs will be taxed similar to debt funds. So, it will be similar to the information you have provided in the screenshot as the current laws of taxation

STCG (within 3 years ) - will be added to your taxable income and taxed as per the slab.
LTCG (more than 3 years) - will be taxed at 20% with indexation.

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@nithin Ok, but they do invest in international stocks. I read the link you mentioned and then read the same scheme document for the other scheme which is listed “Reliance-ETF-Hang-Seng-BeEs”. This link of scheme document (Page 41) says that short term capital gains are taxed as per slab and long term is 20% with indexation.

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Even @TAXIQ.IN said that its according to tax slab. Man this is confusing. How come there is no clarification on this anywhere?

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@faisr maybe you can speak to the AMCs and confirm once?

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Gold ETFs and International ETFs will be taxed similar to debt funds. So, it will be similar to the information you have provided in the screenshot as the current laws of taxation

STCG (within 3 years ) - will be added to your taxable income and taxed as per the slab.
LTCG (more than 3 years) - will be taxed at 20% with indexation.

2 Likes
9

If i invest in foreign equity listed in NYSE, NASDAQ directly , what would be the taxation -

I know STCG (within 3 years) would be the same as said by Faisr
But LTCG (after 3 years) will it be taxed at 20% with or without indexation ?

This article confuses me : - https://economictimes.indiatimes.com/wealth/invest/indian-investors-should-add-foreign-stocks-to-their-investment-portfolios/articleshow/64894792.cms

Please clarify if anyone can.

Thans

10

With Indexation