0% Capital Gains. Both Sides. The Singapore DTAA Cheat Code.

Here's what really happened.

The India-Singapore DTAA's Article 13 historically said capital gains on shares of Indian companies were taxable only in the country of residence. Since Singapore doesn't tax capital gains at all, Singapore NRIs effectively paid nothing on their Indian equity gains.

Then came the Third Protocol, signed 30 December 2016 and effective 1 April 2017. India wanted taxing rights back. From that date, gains on Indian shares acquired by Singapore residents on or after 1 April 2017 are taxable in India at normal rates (12.5% for equity LTCG post Budget 2024).

**Pre-April 2017 holdings are grandfathered.** If you bought your Indian equity mutual fund units or shares before 1 April 2017 and you're still holding them, the old 0% exemption still applies when you redeem. Post-April 2017 acquisitions do not get this benefit.

Many Singapore NRIs have mixed holdings, some bought in 2014 (grandfathered), some bought in 2020 (taxed). Your ITR needs to identify which units fall in which bucket, and claim the exemption only on the grandfathered ones.

1. **Pull your original purchase records.** For each equity MF folio, identify units acquired before 1 April 2017. Your AMC can provide a transaction history.

2. **Get your TRC from IRAS** at mytax.iras.gov.sg. Free, digital, takes about a week.

3. **File Form 10F** on incometax.gov.in with your Singapore tax details.

4. **File your ITR** claiming the Article 13 grandfathering exemption ONLY on pre-April 2017 units. Post-April 2017 units pay the normal 12.5% LTCG.

5. **For past years**, file condonation of delay under Section 119(2)(b) for up to 5 past Assessment Years (CBDT Circular 11/2024), but the claim is still limited to grandfathered holdings.

The real money for Singapore NRIs is in the interest (30% → 15%) and dividend (20% → 15% for individuals; 10% only for corporate beneficial owners holding ≥25%) rates under the DTAA. These apply to every rupee of Indian interest and dividend income, without any 2017 carve-out. That's the consistent, large recovery. The MF grandfathering is a one-off for old-school investors still holding their pre-2017 portfolios.

The 0% rate applies to capital gains on “shares.” Indian mutual fund units are generally treated as shares under the DTAA. But not all treaty interpretations are identical.

Debt mutual fund gains are trickier, they may not qualify under the shares article and could be treated as “other income” (which is also 0% under Article 21, but through a different route).

Property mutual funds (REITs, InvITs) have their own treatment.

The point: equity MF gains are the clearest win. For everything else, the answer is usually still “yes, DTAA helps” but the specific article varies. That's why country-specific CA expertise matters.

Our Singapore-specialist CAs deal with IRAS + Indian IT Department daily. They know which article to cite and how to structure the claim.