I invest in Indian mutual funds and shares — how is tax handled when I redeem?

Indian mutual funds and shares are very much open to NRIs, and the tax mechanics are designed to be self-completing. When you redeem, the gain is worked out and tax on it is generally deducted at source then and there, with the net proceeds credited to your NRE or NRO account — so there's no separate chase at year-end.

How much is deducted depends on what you held and for how long — equity and debt, short-term and long-term each follow their own treatment — and the deduction is calculated on the gain, not the whole amount you take out. Long-held equity gains, in particular, enjoy gentler treatment up to a prescribed level.

Here's the part many NRIs miss: the tax deducted is rarely the final word. A treaty between India and your country of residence can lower the rate, your country of residence may credit the Indian tax against its own, and filing an Indian return often recovers an excess deduction. Without the return, that money simply stays parked.

We map the redemption and treaty position for NRI investors and file the return that claims back what's yours — so your Indian portfolio works as cleanly for you abroad as it would at home. A quick review before a large redemption usually pays for itself.