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Mihir Tanna831 Answers |Ask - Follow
Tax Expert - Answered on Nov 17, 2022
Asked on - Nov 17, 2022Hindi
I am staying in India from around 4 years and working as a consultant in a Mexican Company (previously I was residing there, but now working from India) and getting income from Mexico. I am also paying tax on my abroad income I am getting in my NRO/ NRE account with Axis Bank.
I want to know if I am an NRI or Resident Indian?
Whether, I can open Mutual Fund account with NRI status or Resident India status?
What will be the tax implications?
Please guide me as I am not getting proper explanation.
Ans: Based on available details, you seem to be resident and ordinary resident for income tax purpose.
(more)
You can always check status at calculator provided at income tax website (external link)
Accordingly, you should inform bank about change in residential status immediately and change the type of account (NRO/NRE Account).
Also you have to open account as resident for MF and tax implications will arise at the time of transfer of mutual fund units. Tax rate will depend on type of fund (equity based or debt based) and period of holding.
Mutual funds whose portfolio’s equity exposure exceeds 65% are equity funds.
Equity funds held for 12 months or more are considered as long term, whereas it is 36 months in case of debt funds.
Short term equity funds are taxed at 15% and debt funds are taxed at slab rate.
Long term equity funds are taxed at 10% (if capital gains of exceeds Rs 1 lakh) and debt funds are taxed at 20% after indexation.