| Question And Answer | |
|---|---|
| Subject: | Applicability of DTAA Benefits on Capital Gains from Indian Mutual Funds |
| Category: | Income-Tax |
| Querist: | Aaliya Mariyam |
| Answered by: | Law Intern |
| Tags: | Capital Gains, mutual fund, NRI |
| Date: | August 14, 2025 |
Can we claim exemption/relief on Capital Gains from Indian Mutual Funds for NRIs in Saudi Arabia by virtue of Article 13(6) of DTAA with Saudi Arabia?
Yes. Article 13(6) of the DTAA states that gains from the alienation of any property (other than shares) shall be taxable only in the country of residence of the seller. Since mutual fund units in India are issued by trusts and not classified as “shares” under Indian law or the DTAA, they are eligible for exemption. See Anushaka Sanjay Shah (Ms) v. ITO (IT) (ITAT Mumbai)
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