Can NRI invest in ELSS mutual funds?

Equity-linked saving schemes (ELSS) allow tax saving under Section 80C of the Indian Income Tax Act. An investment of up to ₹ 1.50 lakh in ELSS can be claimed as deduction from taxable income in India. These tax-saving benefits are available to both Indian residents and NRIs.

Is ELSS tax-exempt?

The Long-Term Capital Gains on ELSS are tax-exempt up to Rs 1 lakh, and dividend received is tax-free in the hands of investors. You can continue to invest in this scheme even after the completion of the lock-in period of three years.

Is ELSS taxable on maturity?

Tax-saving FDs have a five-year lock-in and PPF has a 15-year maturity. 1 lakh a year from ELSS mutual funds are exempt from income tax and long-term capital gains above Rs. 1 lakh are taxed at 10\%. Ease of investment: Investing in an ELSS is simple (read step-by-step instructions on how to invest in any mutual fund).

Is ELSS good for NRI?

Equity Linked Savings Scheme (ELSS) is the most preferred tax-saving option for most tax payers because of the shortest mandatory lock-in period and its potential to offer superior returns. Even for Non-Resident Indians (NRIs), it works out as the best option, say investment experts.

Are mutual funds taxable for NRI?

Taxation rules for NRIs and residents of India are alike. For equity mutual funds, the investments made for 1 year or less will be taxed at 15\% as per the short-term capital gains taxation rules. For long-term investments, the mutual funds are taxed at a rate of 10\% as per the long-term capital gains taxation rules.

Can NRI invest in ELSS in India?

Can NRIs invest in mutual funds in India. NRIs are allowed to invest in mutual funds in India – as long as they adhere to the rules of the Foreign Exchange Management Act (FEMA).

How do I know if a mutual fund is tax saver or not?

An ELSS is a mutual fund class that offers tax deductions under Section 80C of the Income Tax Act, 1961. To check if a fund is an ELSS or not, you need to check for its details on the fund house’s website.

Is mutual fund dividend taxable for NRI?