GIFT City Funds
✅ Double Taxation Avoidance Agreement (DTAA) between India and the UAE: The DTAA between India and the UAE serves as a cornerstone for NRIs’ tax planning endeavors. Under this agreement, NRIs based in the UAE enjoy the privilege of exemption from income tax in the UAE on income earned in India.
✅ Exemption from Capital Gains Tax: One of the most notable advantages offered by the DTAA is the exemption from capital gains tax for UAE-based NRIs investing in India. This exemption extends to mutual funds, corporate bonds, and government securities, providing a significant boost to investment returns, particularly for long-term holdings.
✅ Taxation on Different Investment Instruments: Taxation varies across investment instruments. Income from category-1 and category-2 Alternative Investment Funds (AIFs) is taxable, while category-3 AIFs offer exemption. Moreover, for immovable property and shares, particular provisions in the settlement enable taxation in India. Understanding these nuances is key for optimizing your portfolio and tax planning strategies.
✅ Eligibility and Accessibility: Despite the benefits, accessing them requires fulfilling certain eligibility criteria For instance, obtaining a tax residency certificate for the UAE, although relatively straightforward, comes with associated expenses. However, the process itself is not overly complex, ensuring accessibility for interested investors.
✅ Expert Guidance: Given the intricacies involved, seeking guidance from knowledgeable professionals is paramount. Our team of wealth management experts is dedicated to providing tailored solutions and assisting you in navigating the complexities of international tax laws. We are committed to ensuring that you maximize the benefits available to you as a UAE-based NRI investing in India.
