I am a NRI working in Middle East. I am investing ₹1 lakh every month via SIPs. These funds are all equity mutual funds. The returns are very good and lately they are crossing ₹3-4 lakhs on an yearly basis. I have the following queries:
- A Dhuwe
- As the profit is more than ₹2 lakh do I need to file income tax return in India.
- Do I need to file IT returns or only in the year when I redeem the funds.
- Do I need to pay the income tax in India considering the investment is in equity MF and I am planning to hold these funds for a long period of more than five to six years.
An NRI should file returns if his taxable income in India exceeds ₹2.5 lakh during the assessment year or if there is a short-term or long-term gains from sale of investments or assets. Since you haven't sold any of your investments or realised any gains, you are not liable to pay any taxes.