How to show international equity or debt ETF listed in india For example, there’s an ETF called Mirae Assent FANG or MAFANG ETF or Motilal Oswal NASDAQ 100 etf
or its FoF mutual fund ltcg or stcg in itr 2
Is the tax treated the same way as if I hold direct foreign equity share listed in the USA. ( Fully or fractionally)
Or , Debt mutual fund (non equity category)
Do i have to disclose Schedule FA, Form 67 , Schedule TR and other Foreign schedule as normal Direct USA EQUITY has to do for intl ETFor it’s FOF fund
Pls help on this if anyone is invested in such etf or FoF fund
and ALSO for gold/silver etf or its Fof fund how to show ltcg or stcg on itr 2
Both gold /Sliver etf & FOF are filled like debit mutual funds. ?is it correct
international etf/FoF listed in india or gold etf / FoF has to show in From Sale of Assets other than all the above listed items” in the Capital Gains Schedule…
*New rates will come into effect from April 1, 2025
Moreover, debt funds here mean funds/ETFs with more than 65% allocation to debt instruments.
They were indeed taxed like debt funds. However, in Budget 2024, the section was amended and will only include debt funds from 1st April 2025 onwards. Hence, gold/silver/foreign ETFs will be taxed as mentioned in the above table.
@Quicko
I am facing an issue with taxation in Silver ETF, please help me.
As per the above table and rules Silver ETF is taxed at slab rates in short term now. I have a significant amount of realised profit on Silver ETFs, it is reflecting in the AIS too.
But the issue there is that in AIS, the security class of the ETFs are listed as “unit of Equity oriented mutual Fund” for both equity ETFs and Silver ETFs.
Shouldn’t the Silver ETFs be under the sale of other unit.
The Annual Information Statement (AIS) reflects data reported by the Registrar and Transfer Agents (RTAs) and depositories, such as CDSL. Since Exchange Traded Funds (ETFs) are traded in the market, they are often categorized as “units of equity-oriented mutual funds” in the AIS, regardless of their underlying asset.
However, STCG from silver ETFs are taxed as per the applicable slab rate and you can report it in the ITR accordingly.
As far as the information in AIS is concerned, you can provide feedback on the same to rectify the discrepancy.
Hi @Quicko , What about Foreign Mutual Funds (not ETFs) like ICICI Nasdq 100 Index Fund or MO S&P 500 Index Fund? What taxation will be applicable for this fund if someone is selling in 2025?
Mutual funds and ETFs are essentially a collection of different assets they invest in, and some of them may have allocations into foreign markets as well. The above mentioned funds fall in this category. Thus your gains from these mutual funds will be taxed based on the below rate:
Tax on STCG = 20% (Holding period <= 24 months)
Tax on LTCG = 12.5% (Holding period > 24 months)
