NRI Tax Guide
NRI IPO Taxation in India
Capital gains tax, TDS, DTAA benefits, and repatriation rules for NRI IPO investors.
Disclaimer: This is general information only. Tax laws change and personal circumstances vary. Always consult a SEBI-registered tax advisor. IPOGenie is not a tax advisor.
Tax Summary for NRI IPO Investors
| Scenario | Tax Type | Rate | TDS |
|---|---|---|---|
| Listing gain sold within 1 year | STCG | 15% + surcharge + cess | TDS deducted by broker |
| Held for more than 1 year | LTCG | 10% above Rs.1 lakh gains | TDS at 10% |
| Dividends received | Income from other sources | Slab rate or 20% | TDS at 20% |
| NRE account gains | Tax-exempt in India | NIL | No TDS on NRE interest |
| NRO account gains | Taxable in India | Applicable rate | TDS applicable |
Key Points for NRIs
DTAA Benefits
India has Double Taxation Avoidance Agreements with 90+ countries. NRIs may claim credit for taxes paid in India against their home country tax liability.
TDS on Equity Gains
Indian brokers deduct TDS at 15% (STCG) or 10% (LTCG above Rs.1L) on NRI gains. File ITR to claim refund if your total income is below the taxable threshold.
Repatriation from NRE
Funds in NRE accounts including IPO allotment proceeds and gains are freely repatriable to your home country without any limit.
Repatriation from NRO
NRO account repatriation is capped at USD 1 million per financial year after paying applicable taxes and obtaining CA certificate.
ITR Filing Obligation
NRIs with Indian income exceeding Rs.2.5 lakh must file ITR in India. IPO gains count as Indian income even if TDS was deducted.