Should I pay taxes?

I am an NRI living abroad. I have invested about ₹6 lakh in mutual funds. I receive yearly dividend from them. The current value of my investment is ₹8 lakh after about 15 years. If I sell now, do I have to pay taxes?
- Ajit Chatterjee

It is not clear from your mail whether you have invested in debt or equity mutual fund schemes or whether you have made the entire investments before 15 years. Since you have not offered any details of your investments, we are offering you a general advice. The short-term and long-term capital gains taxes on mutual funds are the same for Non Resident Indians (NRIs) and Indian investors. The only difference is that in the case of NRI investors the short-term and long-term capital gain taxes will be deducted at the time of redemption.

Short-term capital gains
Debt: If investments are sold before three years, gains are added to the income and taxed at Income Tax slab applicable to the investor.
Equity: If investments are sold before a year, gains are taxed at 15 per cent

Long-term capital gains
Debt: If investments are sold after three years, gains are taxed at 20 per cent with indexation benefit.
Equity: If investments are sold after a year, nil tax on gains.

This article was originally published on February 24, 2016.