What is the capital-gains tax rate on Indian shares for an NRI in Belgium?

Long-term gains on Indian listed equity and equity mutual funds are taxed at 12.5% above a ₹1.25 lakh annual exemption, and short-term gains at 20% (Sections 112A / 111A, post-Budget 2024). The India-Belgium treaty leaves these gains taxable in India (Article 13(5): India taxes a holding of at least 10%; a portfolio holding below 10% is taxable only in Belgium), so the rate doesn't change because you live in Belgium — but you can recover any TDS the AMC over-withheld.

My AMC deducted more tax than I think I owe on a redemption. Why?

AMCs and brokers withhold on the gain at a flat slab without applying your ₹1.25 lakh long-term exemption or the precise holding-period split. So the TDS often runs ahead of your real liability. When you file your Indian return you compute the gain correctly, apply the exemption and the 12.5% long-term rate, set the TDS against it, and the excess is refunded.

Belgium NRIs · Capital Gains Tax

Capital gains tax on Indian shares and mutual funds for NRIs in Belgium

Selling Indian equity or mutual funds from Belgium triggers Indian capital-gains tax — here's the rate, the AMC withholding, and how to reclaim the excess.

If you invest in Indian listed shares or mutual funds while living in Belgium, gains on those holdings are taxed in India — under the India-Belgium treaty, India keeps the right to tax gains on Indian securities (Article 13(5): India taxes a holding of at least 10%; a portfolio holding below 10% is taxable only in Belgium), so the headline long-term rate stays at 12.5%. When you redeem, your broker or AMC withholds tax on the gain before paying you, often at a flat rate that runs ahead of what you actually owe once the ₹1.25 lakh long-term exemption and your holding period are applied. The over-withheld amount comes back through your Indian return.

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India-Belgium key facts: capital gains tax

Default Section 195 rate	12.5%
India-Belgium DTAA treaty rate	12.5%
Your saving via the treaty	No rate reduction — see note below
Treaty article / basis	Article 13(5): India taxes a holding of at least 10%; a portfolio holding below 10% is taxable only in Belgium
Your TRC issuing authority	FPS Finance / SPF Finances

Rates reflect India's domestic Section 195 withholding and the India-Belgium treaty. Surcharge and cess apply on top where relevant.

How it works on the India side

Indian capital-gains tax on equity and equity mutual funds follows Sections 111A and 112A: long-term gains (held over a year) are taxed at 12.5% above a ₹1.25 lakh annual exemption, and short-term gains at 20%, after the Budget 2024 changes. For an NRI, the AMC or broker deducts TDS on the gain at redemption — and because they apply a flat slab without your personal exemption or full holding-period detail, the deduction is frequently more than your real liability.

The correction happens on your return. You compute the gain properly across all your folios and brokers, apply the exemption and the right rate per holding period, and set the TDS already deducted against it. Where the TDS exceeded the actual tax — which is common once the exemption is applied — the excess is refunded. Getting the cost basis right across multiple brokers is the part that most often goes wrong.

What changes because you live in Belgium

Belgian residents are taxed on worldwide income, with a communal surcharge of up to 9% stacked on federal tax that reaches 50%, and a foreign tax credit for the Indian tax paid. The point that decides an Antwerp diamond family's Indian tax is the size of the stake: India taxes gains on a holding of at least 10%, while a portfolio holding below 10% is taxable only in Belgium. Map the holding before any Indian share sale, because the treaty article that applies turns on that 10% line.

Frequently asked questions

Common questions from Belgian NRIs

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Read the full guide, or see your country's complete picture

NRI capital-gains ITR across multiple brokers Belgium NRI tax guide — all income types & DTAA rates

Capital Gains Tax sorted, by an Indian CA who works with Belgian NRIs

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