03 July 2011
One of my client is a NRI. As the interest earned in NRE account of a non resident is exempt from tax, i want to know that is any other income reported in NRE account also exempt from taxation. my client has invested in some MF and has withdrwan from NRE account. Similarly, he has sold the MF and the proceeds are credited to the NRE account. In such a situation is capital gain taxable??? or income in NRE account is exempt???
03 July 2011
Cap gain from MF is exempt if the MF is equity oriented one Otherwise it si taxable Merely because investment is made out of NRE A/c the taxability does not change
04 July 2011
sir can you please tell me how do we know that a mutual fund is equity oriented?? My client has provided me a portfolio report but it is not clear from the portfolio report whether the mutual funds are equity oriented or not??
CAclubindia
