Query of the blog reader: Whether Tax is Deducted at Source in case of redemption in Gold ETF fund or Gold Fund of Fund?
The answer is No. (If you are resident Indian)
TDS will not be deducted in case of redemption in gold ETF fund or Gold Fund of Fund. Tax deducted at source is not applicable for resident Indian.
Tax Deducted at source is applicable
only for NRI mutual fund Investors. In case of Resident Indians, TDS is not deducted on the sale proceeds of mutual
fund and that applies to gold ETF and gold savings fund.
Now your second question: how gold ETF or gold savings funds are taxed??
More details refer this
The tax system for gold ETFs is similar to that of
non-equity mutual funds like debt funds. When computing income tax,
gold exchange traded funds are treated as debt funds.
Tax Implication on Gold ETF, Gold Fund of Fund and E-gold and gold in physical form
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IS TDS deducted on debt funds for resident indian?
ReplyDeleteTax Deducted at source is applicable only for NRI mutual fund Investors. In case of Resident Indians, TDS is not deducted on the sale proceeds of mutual fund and that applies to debt funds also.
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