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.