What about indian listed ETFs like Motial oswal Nasdaq 100 ETF (NSE: MON100) or Nippon Hangseng ETF (NSE: HNGSNGBEES)?
Since they are ‘traded’ on ‘Indian’ exchanges, it means they are eligible for 1.25 lakh exemption on LTCG, right?
Hi @anon4u,
The ₹1.25L exemption is available only in the case of domestic listed shares and MFs/ETFs that invest in domestic equity. This is specified in section 112A of the Income Tax Act.
The funds mentioned by you are foreign ETFs and track foreign indices. Hence, the exemption will not be available.
Hope this helps!
Thanks and what will be the holding period consideration for these foreign ETFs for LTCG? 1year or 2 years?
Hai mate…What does the term Foreign Equity ETF (Second row) in the PDF stand for?
Hi @anon4u,
The holding period to classify the gains as long-term will be 12 months if the ETF is listed on a Indian stock exchange and 24 months if it is listed outside india.