Motilal Oswal Nasdaq 100 ETF (MON100) bought in Mar 2023, not sold yet
What would be the tax liability if I sell in FY24-25 vs FY25-26?
I read Foreign Stocks and Taxation – Varsity by Zerodha but it’s still not clear.
How is Motilal Oswal Nasdaq-100 ETF taxed in India?
Motilal Oswal Wealth Management
Invest in Equities backed by Advisory & Research (1987–present)Author has 1.1K answers and 10.4M answer views3y
The Nasdaq-100 ETF we provide is taxed as an ‘investment other than equity oriented fund’ (i.e. debt taxation with/without indexation benefits). In the event you have decided to sell the Nasdaq-100 ETF, you will have to report the income or loss in the financial year. The losses or gains should be reported as capital gains income. This fund is classified as a debt mutual funds investment.
Since they are considered debt mutual funds, the taxation on their returns would be done in the following manner :
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Returns from the Nasdaq-100 ETF sold after 3 years will be recorded as long-term capital gain and the returns on them are taxed at 20% of indexation.
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Returns for the Nasdaq-100 ETF which are sold in less than 3 years will be recorded as short term capital gains and the returns will be taxed depending on the fund owner’s income tax slab.
If you wish to reduce the tax amount, you should learn about the process of debt mutual funds taxation.
The Nasdaq-100 ETF we have provided gives our customers the ability to include international funds in their portfolio. Including such international funds can help individuals who are looking to diversify their portfolios.
This answer is 3 years old, taxation rules have changed since then I believe
@Quicko
Can you please help?
- What would the applicable holding period to count it in LTCG? I’m assuming it should be 1 year since it’s listed in India.
- Would the limit of 1.25L exemption apply to this as well?
- Does the taxation for this change between this FY and next FY as per the new budget?
I researched a bit but couldn’t find any definitive answer.
@Niket Please refer to the official scheme information document https://www.motilaloswalmf.com/CMS/assets/uploads/Documents/3809f-sid_motilal-oswal-nasdaq-100-etf.pdf Page 73 from Invest Online in Motilal Oswal Nasdaq 100 ETF
The below Tax Rates shall be applicable for FY 2024-25:
Nature of Income Resident Investor Mutual Fund
Long Term Capital Gains (Redeemed
between April 1, 2024 to July 22,
2024)
12.5% above Rs.1.00 Lac* Nil
Long Term Capital Gains (Redeemed
on or after July 23, 2024)
12.5% above Rs.1.25 Lac* Nil
Short Term Capital Gains 20% Nil
*subject to grandfathering clause
Capital Gains tax rates are excluding Surcharge & education cess.
You can also request SAI from Motilal via email for more information on taxation,
For details on taxation, please refer to the clause on Taxation in the Scheme Additional Information (SAI)
If you get SAI, kindly share here.
I have been checking market depth for Motilal Oswal Nasdaq-100 ETF. Not a single seller only buyers at 2 pm approx time (icici Direct - market depth). Same with FAANG - not a single seller when I was checking it.
iNAV is around 170. So, it is trading at a heavy premium due to recent rupee depreciation.
Hi @Niket,
As this is a foreign ETF listed in India, it’ll be taxed as follows.
*New rates will come into effect from April 1, 2025.
@Quicko Their official document https://www.motilaloswalmf.com/CMS/assets/uploads/Documents/3809f-sid_motilal-oswal-nasdaq-100-etf.pdf page 73 suggests STCG is 20% flat, whereas you’re suggesting Slab rate(from Apr 1, 2025). Why is that? Isn’t listed equity always 20% flat(from Apr 1, 2025)? I thought slab rates only applied to debt ETFs or debt oriented MFs.
@Quicko
Would the limit of 1.25L exemption apply to this ETF as well?
While it’s a listed ETF, it doesn’t meet this criteria of being a “equity oriented fund” that is needed for the 1.25L exemption, correct?
1 Like
what about nasdaq 100 FOF?
Hi @Niket,
Yes, as the ETF does not invest in domestic equity, the ₹1.25L exemption will not be applicable.