The capital gain tax that we pay on US mutual fund (e.g. ,otilal oswal nasdaq) or stocks goes to which government? US or India?
Hi @Jack_R
Indian government 
They are taxed like domestic debt and mutual funds.
Time period for determining STCG/LTCG : 3 years
STCG : as per slab rates
LTCG : 20% with indexation benefit
@Quicko - do correct me if I missed something
3 Likes
Why the Indian government?? Stocks are of foreign company then why do we pay tax to our government?
Can someone plz clarify?
The mutual funds might pay tax to the us government as a whole when they sell the stocks they have. but when we redeem the units and make profits the tax we pay will go to Indian government .
@Jason_Castelino Sir any clarity from you to Jack_R, he seems worried .
When it comes to tax you shouldn’t ask why. Yes. There are reasons for it but I can’t get into the memorandum of each section of income tax act.
Yet I shall answer it with another question.
When you trade in the shares of reliance why do you pay stamp duty to your state government and not to Maharashtra government when reliance is having its registered office in Roc, Mumbai.
And now if you ask when do we pay this, you will have to check your contract note.
Hello @Jack_R, @Meher_Smaran
As per the Income Tax Act, any income which is accrued or received in India is taxable in India and tax is received by the Indian Government. You can claim relief u/s. 90/90A/91 if tax is withheld or paid in another country provided the specified conditions are met.
If the security is equity stocks or equity mutual funds then the time period for determining STCG/ LTCG is 24 months and for other securities its 36 months.
Hope this helps!