When you redeem Indian mutual funds as an NRI, the fund house deducts TDS before paying you — often more than the tax you actually owe, especially on debt funds. This calculator works out your real tax on mutual fund gains for Tax Year 2026-27 and compares it with the TDS deducted.
Covers equity funds and debt funds purchased on or after 1 April 2023 only.
Equity mutual funds
Debt mutual funds
Other Indian income
How mutual fund gains are taxed for NRIs
| Fund type | Holding period | Tax rate |
|---|---|---|
| Equity funds | 12 months or less | 20% (short-term) |
| Equity funds | More than 12 months | 12.5% on gains above ₹1.25 lakh a year (long-term) |
| Debt funds bought on or after 1 April 2023 | Any | Slab rates |
Surcharge (capped at 15% on equity capital gains) and 4% cess apply on top. Equity fund gains are taxed at these flat rates, and NRIs cannot use the basic exemption limit to reduce them. Debt fund gains, by contrast, are added to your other Indian income and taxed at slab rates, so the basic exemption (₹4 lakh under the new regime) is automatically reflected in that calculation.
Why NRIs often overpay through TDS
Fund houses deduct TDS on every redemption by an NRI. On debt funds, TDS is usually deducted at the highest slab rate (30% plus cess), even if your total Indian income is small enough to attract little or no slab tax. The difference is refunded only if you file an Indian income tax return for the year.
How we can help
- NRI ITR filing to claim your TDS refund — from ₹3,499, reviewed personally by a practising Chartered Accountant.
- Reporting capital gains correctly, including set-off and carry-forward of losses.
Everything is handled in writing over WhatsApp and email. Message us on WhatsApp with your capital gains statement for a fixed quote. Also see our NRO interest tax calculator.