Kushagra Gupta (Article)
How NRIs Can Avoid Paying Taxes on Mutual Fund Investments
For Non-Resident Indians (NRIs), mutual fund investments in India offer attractive growth potential. However, navigating taxation can be complex due to the risk of double taxation, when both India and the country of residence tax the same income.
This is where Double Taxation Avoidance Agreements (DTAAs) play a vital role. These bilateral treaties help NRIs avoid paying tax twice by:
✅ Eliminating dual taxation on capital gains or
✅ Allowing tax credits in the country of residence for taxes paid in India
Understanding DTAA provisions based on your country of residence is key to optimizing your post-tax returns and making smart investment choices.
🔍 Key Concepts:
Residence Rule: Taxed where you live
Source Rule: Taxed where income is earned
