Is there a limit on how much I can invest in Motilal Oswal NASDAQ 100 Exchange Traded Fund under LRS? Does it come under LRS as I am basically paying an Indian company (Motilal Oswal). Do I have to report such investment in income tax filling under LRS ? @Quicko
It’s an Indian ETF. You can buy how much ever you want. No LRS etc
When you sell the ETF, you need to report the income or loss in that financial year. It should be reported as a Capital Gains Income.
I know we need to report capital gains but do we also need to report investments under LRS? @Quicko
No this ETF is under Indian IT act. The MF is however classified as a debt mutual fund and not equity mutual fund as its not investing in Indian equity. @Quicko: Can you please elaborate on taxation of Indian residents for investing in this ETF ?
Here is taxation on Mutual Funds in the case of a resident:
Equity Mutual Fund
LTCG - 10% in excess of Rs. 1 lac under Sec 112A
STCG - 15% under Sec 111A
Debt Mutual Fund
LTCG - 20% with benefit of indexation
STCG - income tax slab rates
Set Off and Carry Forward Loss
LTCL - Can be set off against LTCG and carried forward for 8 years
STCL - Can be set off against STCG and LTCG and carried forward for 8 years