Long term capital gain tax on gold mutual funds- NRI Investment

Query of Blog Reader:

I shall appreciate if you could let me know what is long term capital gain tax on gold saving mutual fund. XXXXX MF have deducted 22% on the gold mutual fund I sold after 1 year of possession. Which method they should follow 11% or 20% with indexation. I had them for 1 year 12 months. What indexation they should apply? Hope to hear soon from you

After reading your query it seems you tax status is NRI as tax is deducted at source.

In case of NRI's, TDS will be deducted on the sale proceeds. The TDS will deducted depending upon whether it is a short-term capital gain or long term capital gains.

 

The tax system for Gold Savings Fund or Gold ETF 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.

How is TDS calculated for NRI Investment ?

 Long Term Capital Gain Tax on Gold mutual Funds for NRI 

TDS rate for Long Term NRI investor's under Non-Equity Scheme(s) = 20% with indexation benefit. (A)
Surcharge = A x 10% = 2% (B)
Education Cess = A + B x 3% = 0.66% (C)
TDS to be deducted = A + B + C = 22.66%

 

 TDS rate for Long Term NRI investor's under Equity Scheme(s) = NIL