A recent ruling by the Mumbai ITAT in Anushka Sanjay Shah v. ITO (ITA No. 174/Mum/2025) has clarified how capital gains on mutual funds are treated under the India–Singapore Double Taxation Avoidance Agreement (DTAA).
Under Article 13(5) of the DTAA, gains from “other property” (not including company shares) are taxable only in the country of residence. For Singapore citizens and NRIs, this means that capital gains from the sale of mutual fund units (equity or debt) are taxable only in Singapore — which does not levy capital gains tax. The ITAT confirmed that mutual fund units, being issued by trusts, are not classified as shares under Article 13(4B).
To claim this benefit, investors must:
- Obtain a Tax Residency Certificate (TRC) from Singapore
- Declare the gains in their Indian ITR and claim exemption under Article 13(5)
How We Can Help –
At NS Global Consultants Pte Ltd., we assist NRIs and cross-border investors with:
- Tax compliance and filings to claim DTAA benefits
- Bookkeeping & Compilation for accurate reporting of investment income
- Corporate Secretarial Services to manage cross-border business structures
Our expertise ensures you stay compliant, efficient, and fully aligned with both Singapore and Indian tax frameworks