Here's what you need to know about how international funds, offered by mutual funds, are taxed.
Edited Highlights
0:31 How are international funds that are offered by mutual funds, taxed?
2:57 International funds help you to invest abroad
3:10 Most of the international funds available in India are feeder funds that invest in funds abroad
3:21 For tax purposes, they are treated as debt funds
3:31 If you stay invested for three years or less, the capital gains that you make, get added to your income and you pay tax accordingly
3:38 If you are investment is for more than 3 years, you pay long term capital gains tax of 20%
3:49 You also get the benefit of inflation indexation
3:52 The cost of acquiring mutual fund units gets adjusted upwards according to the inflation index
4:02 As a result, the gains for tax purposes, gets lower
4:07 The gains are substantial if you are in the 30% tax slab
