Depending on your country of residence, you could save a good chunk capital gains tax.

 

Here’s how you can potentially reduce overall capital gains tax under the Double Taxation Avoidance Agreement (DTAA).

Countries such as Singapore, Switzerland, UAE, Malaysia, Hong Kong, Belgium, New Zealand, Luxembourg, and several others do not levy capital gains tax. So your tax outlay can be lower.

India has signed DTAA agreements with over 88 countries to avoid taxing investors who earn income from multiple countries and you should make use of it.

By providing the following documents, you can redeem your funds and accrued income from Indian assets at reduced TDS deduction:

Tax Residence Certificate (TRC) issued by your country of residence.
Form 10F.
DTAA Declaration.
Copy of Passport and PAN Card.
Covering letter from the investor specifying all folio numbers (for managed funds).
Proof of overseas address.

Key Points to Note:
Obtaining a TRC from your country of residence can be challenging, and the entire process is time-consuming.
The DTAA needs to be renewed every financial year.
All relevant forms must be submitted individually to each fund.
Form 10F can be downloaded from the Income Tax Portal.