ETMarkets Smart Talk | Why some NRIs pay zero tax on mutual fund gains in India: Sreepriya NS of Entrust Family Office explains

An ETMarkets Smart Talk interview with Sreepriya NS of Entrust Family Office explains why NRIs in Dubai, Singapore, and Mauritius pay zero capital gains tax on Indian mutual fund gains. Under DTAA Article 13(5), mutual funds established as trusts under SEBI regulations are taxed differently from company shares, making gains taxable only in the NRI's country of residence. As of December 2024, NRI mutual fund investments stood at approximately USD 18-20 billion (around INR 1.6 lakh crore), NRI bank deposits reached about USD 162 billion, and NRI real estate investment in H1 2024 was approximately USD 3.1 billion, highlighting India's appeal as a long-term destination driven by domestic consumption and demographic dividend.