Yes. The gains earned by NRIs are subject to withholding tax (WHT) or Tax Deducted at Source (TDS) directly by the Mutual Fund Companies.


TDS DEDUCTED ON
SHORT-TERM CAPITAL GAINS
LONG-TERM CAPITAL GAINS
Equity, ELSS & Balanced Funds 15% None
Debt, Income & Liquid Funds 30% 20%


All tax rates above are base tax rates and do not include surcharge or education cess.

Surcharge is currently calculated at 10% or 15% based on your income, and education cess is currently at 3%.


 Local resident investors are not subject to TDS upon sale or redemption, though they may have a tax liability.