NRI Capital Gains Tax Calculator
For NRIs, capital gains tax is collected differently from residents — the broker or fund house deducts TDS at source on redemption, and the ₹1.25 lakh equity exemption only comes back when you file. This calculator shows your actual tax, the TDS withheld on the transaction, and the refund you can reclaim. Selling property? Use the property-sale TDS calculator instead. Updated for FY26.
Listed shares and equity mutual funds. LT (>12 mo) 12.5%, ST 20%. TDS deducted on the full gain — the ₹1.25L exemption is claimed only at filing.
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How NRI capital gains tax differs from residents
The tax rates on capital gains are the same for NRIs and residents after the July 2024 changes — 12.5% long-term on equity above ₹1.25 lakh, 20% short-term on equity, slab on debt, 12.5% on long-term gold and unlisted shares. What differs is collection. A resident pays capital gains tax through advance tax and self-assessment when filing. An NRI has it deducted at source — the broker, AMC or buyer withholds TDS before the money reaches you.
That single difference drives most NRI capital-gains pain: cash is withheld immediately, the ₹1.25 lakh equity exemption is ignored at the deduction stage, and getting anything back means filing a return. This calculator shows all three numbers — the TDS withheld, your actual liability, and the refund gap.
The ₹1.25 lakh exemption problem
For residents, the first ₹1.25 lakh of long-term equity gains each year is tax-free automatically. For NRIs redeeming equity funds or selling shares, the AMC or broker deducts 12.5% (plus surcharge and cess) on the entire long-term gain — the exemption is not applied at source. You reclaim the tax on that first ₹1.25 lakh only by filing your Indian return. On a ₹3 lakh long-term equity gain, that's roughly ₹15,600 over-deducted purely from the ignored exemption, before counting any losses or DTAA relief.
Debt funds and the slab hit
Debt mutual funds bought on or after 1 April 2023 are taxed at your slab rate on the whole gain under Section 50AA — no long-term benefit, no indexation. For NRIs, AMCs typically deduct TDS at the maximum 30% plus surcharge and cess, regardless of your actual slab. If your real slab is lower, the difference is refundable on filing — or avoidable upfront with a Form 13 lower-deduction certificate. Compare the guaranteed-return alternative with the FD calculator.
DTAA and getting money back
Your country's tax treaty with India (DTAA) can change how gains are taxed or give credit for tax paid, avoiding double taxation. Claiming it needs a Tax Residency Certificate and Form 10F. Whatever is over-withheld — from the equity exemption, capital losses, a lower slab or treaty relief — is refunded once you file. For large, predictable gains, apply for a Form 13 lower-deduction certificate (the same route used for property) so less is withheld to begin with.
Worked example
You redeem equity mutual funds: bought for ₹10 lakh, sold for ₹16 lakh after two years. Long-term gain is ₹6 lakh. The AMC deducts TDS at 12.5% on the full ₹6 lakh (no exemption at source) — about ₹75,000 plus surcharge and cess. But your actual liability applies the ₹1.25 lakh exemption: 12.5% on ₹4.75 lakh, roughly ₹59,375 plus surcharge and cess. The gap, about ₹15,600, is refundable when you file. The calculator shows these for your figures.
Glossary+
- TDS at source
- Tax deducted by the payer (broker, AMC, buyer) before paying an NRI. Unlike residents, NRIs have capital-gains tax withheld immediately on the transaction.
- Equity LTCG (112A)
- Long-term gains on listed equity and equity mutual funds held over 12 months: 12.5% above ₹1.25 lakh per year (exemption applied at filing, not at TDS).
- Equity STCG (111A)
- Short-term gains on listed equity/equity MF held 12 months or less: 20%.
- Section 50AA (debt)
- Debt mutual funds bought on/after 1 April 2023 taxed at slab rate on the whole gain, no long-term benefit, no indexation.
- DTAA
- Double Taxation Avoidance Agreement — a treaty between India and your country of residence that can reduce or reallocate tax on the same income.
- Form 13 / Section 197
- Application for a lower/nil TDS certificate, so the payer withholds on your actual (lower) liability instead of the full gain.
Frequently Asked Questions
How are capital gains taxed for NRIs? +
The rates are the same as for residents post 23 July 2024, but the collection is different: for NRIs the payer deducts TDS at source. Listed equity and equity mutual funds — long-term gains (held over 12 months) at 12.5%, short-term at 20%. Debt mutual funds bought after 1 April 2023 at slab rate. Gold, unlisted shares and other assets held over 24 months at 12.5% without indexation. The crucial NRI difference is that TDS is withheld immediately on redemption, and the ₹1.25 lakh equity exemption is not applied at the TDS stage.
Do NRIs get the ₹1.25 lakh LTCG exemption on equity? +
Yes — but only when you file your return, not at the TDS stage. When you redeem equity mutual funds or sell shares, the AMC or broker deducts TDS on the entire long-term gain at 12.5% (plus surcharge and cess), with no ₹1.25 lakh cushion. You recover the tax on that first ₹1.25 lakh by claiming it in your Indian tax return as a refund. This is why many NRIs are over-deducted and must file to get their money back.
What is TDS on mutual fund redemption for NRIs? +
When an NRI redeems mutual fund units, the AMC deducts TDS before paying out. For equity funds: 12.5% on long-term gains, 20% on short-term. For debt funds (bought after 1 April 2023): at the slab rate, and AMCs often deduct at the maximum 30% plus surcharge and cess. Surcharge is tiered by the gain amount. Residents face no such TDS on redemption — they pay via advance tax instead — so this is a distinctly NRI cash-flow hit.
Can a DTAA reduce my capital gains tax? +
Sometimes. Double Taxation Avoidance Agreements can change how capital gains are taxed — historically the India-Singapore and India-Mauritius treaties gave favourable treatment on equity gains, though grandfathering rules from 2017 limit this for investments made after that date. Whether a treaty helps depends on your country of residence, the asset, and when you bought it. To claim any treaty benefit you need a Tax Residency Certificate and Form 10F. Check your specific treaty or ask a chartered accountant.
How do I get back excess TDS? +
File an Indian income tax return. If the TDS deducted exceeds your actual liability — because of the ₹1.25 lakh equity exemption, a lower slab, capital losses to set off, or DTAA relief — the excess is refunded after you file. For large gains you can also apply for a lower-deduction certificate (Form 13) before the transaction, the same mechanism used for NRI property sales, so less is withheld in the first place.
Are NRE/NRO accounts relevant to capital gains? +
The gains are taxed the same regardless of which account receives them, but repatriation differs. Proceeds credited to an NRE account are freely repatriable; proceeds in an NRO account are subject to the USD 1 million per year repatriation limit and need Form 15CA/15CB certification to move abroad. Plan which account receives the sale proceeds with repatriation in mind.