Ltcg on units of equity oriented fund in case of non resident

1. Yes, Equity Oriented Mutual Fund can be unlisted. The best cue is to refer to the latest amendment u/s 112A of the Income Tax Act, 1962. The provisions have been made exclusively to determine Cost of Acquisition for the purpose of computing LTCG u/s 112A in respect of Equity Oriented Mutual Funds which are not listed (i.e. unlisted) on a recognized stock exchange as on 31.01.2018 (under Sec.55(2)(ac)).

2. In your question did you mean Sec.112(1)(c)(iii)?

Now, for Equity Oriented Mutual Fund (referred to as "EOMF" for our purpose)for a non-resident the position would be as under:

As per Sec.112(1)(c)(iii) the amount of income-tax on long-term capital gains arising from the transfer of a capital asset, being unlisted securities or shares of a company not being a company in which the public are substantially interested, calculated at the rate of ten percent on the capital gains in respect of such asset as computed without giving effect to the first and second proviso to section 48.
The expression "securities" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (32 of 1956).
Securities as per Sec.2(h) of the Securities Contracts (Regulation) Act, 1956 includes units of Mutual Funds.

Thus, now, to analyze our situation:

The assessee is a Non-Resident.
He holds a unit(s) of an unlisted EOMF.
Such unit(s) is a long-term capital asset (i.e. more than 12 months).
He transfers such EOMF unit(s) during the previous year.

The Non-Resident can take the benefit of Sec.112(1)(c)(iii) and LTCG on such transfer of unlisted EOMF will be taxed @ 10% with the following conditions while computing the LTCG:

The benefit of Indexation cannot be taken.
The benefit of calculation of LTCG in foreign currency as per the first proviso to Sec.48 cannot be availed.

Please correct me if I am wrong, anyone!

Regards

Ajay