Taxation on International ETF vs FoF

Taxation
1

Is taxation same for International ETF and International FoF?

For example Mirae Asset NYSE FANG+ ETF and Mirae Asset NYSE FANG+ETF FoF.

2

Hi @rahul8

International ETFs and FoFs are taxed in the same manner as debt funds @ applicable slab rates without any indexation benefit

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3

Hi @Meher_Smaran , is there a buy limit on the international funds and the FOFs considering that the new tax law limits the outward remittance to 7L? Or is this taken care already by the ETF or the FoF as the expense ratio?

Thanks.

4

Is MON100 classified as debt fund or equity fundfor taxation?
I sold my position in it after holding for an year and zerodha has classified the profits as long term gain in its console reports. Ideally debt fund should be classsifed as short term at slab rate. Is that a bug in zerodha or MON100 is classified as equity fund for taxation,

5

Hi @Arihant_Bachhawat

They are treated as debt funds.

Taxation would depend on whether the investment was made before April 1st, 2023. But as you rightly pointed out, Short terms are taxed at slab rates in both cases while Long term gains tax for investments before April 1st, 2023 would be at 20% with indexation.

Will check this once with team

6

@Meher_Smaran

7

LRS and TDS don’t apply to international funds. You can invest the amount of your choice subject to restrictions from the AMC.

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