Let’s say net income is 0.001 CHF/ share
Now ICTAx says it’s zero
It’s Zero irrespective of how many shares I have. I would have expected it to stay at 0.001
So just because of rounding, there would be no income calculated
From my experience of buying and holding US domiciled ETFs over last 5 years, the dividend per unit/share is converted (from USD to CHF) and then multiplied by number of unit/share.
I don’t remember how many decimal places are kept (maybe 2). ZH online tax portal does it automatically.
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Yeah I know.
Anyhow let’s see what is calculation for 2024. 2023 is anyways in past
Specific question for people who might be Non-Resident Indians. Anyone this forum ever submitted or claimed DTAA benefits for Mutual funds in India?
Hello,
Could you please let me know how you contacted ICTax? I wasn’t able to find a contact email on their website. I would like to share information regarding the additional four funds in which I am invested, as the Swiss tax authority is trying to calculate income for these.
For the past 4 years, I have filed taxes in Basel-Stadt, and there was never any tax on my Indian Growth Funds. However, since moving to Aargau last year, they are requesting an income statement, which the Indian fund is unable to provide for “Growth” funds.
Thank you for your help.
Actually I contacted them using contact form on FTA webpage.
However @covfefe has provided the email in response
By the way if you do successfully add any funds to ICTax, please inform the group here so that people don’t contact ICTAX for same funds and avoid double work
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Thank you.
I sent Fund annual reports to Aargau tax authority as they requested and they submitted the request to Federal Tax Administration in Bern / ICTax.
Following Indian Funds are included on ICTax now. No additional income is considered from these funds for me.
Parag Parikh Flexi Cap Fund - Direct Plan Growth - ISIN: INF879O01027
Parag Parikh Conservative Hybrid Fund - Direct Plan Growth - ISIN: INF879O01175
ICICI Prudential Short Term Fund - Direct Plan - Growth - ISIN: INF109K013N3
Axis Mid Cap Fund - Direct Growth - ISIN: INF846K01EH3
Axis Small Cap Fund - Direct Growth - ISIN: INF846K01K35
HDFC Small Cap Fund - Direct Growth Plan - ISIN: INF179KA1RW5
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Update: for 5th year in row (2023), the tax return went through without any hiccups with my mutual fund holdings. No transactions, no dividend declared. No questions asked.
EDIT: I did attach the end of the year balance statements from the asset management company for each fund separately.
I think even though tax office is not saying anything doesn’t always mean that they actually checked everything.
As per them, when you declare zero income, they kind of just accept it. I doubt that they check all the entries in the tax forms and read the reports.
The only way to know if the tax calculation is correct is to send them the file and ask ICTAX to add it. They actually told me that they only do such calculations on request, otherwise it’s up to investor to do it.
The nifty 50 fund had zero income for 2023 but it does have positive income for 2024 as listed in Ictax.
In general the dividends in India are not that high , so perhaps it’s going to be fine either ways but I find it easier when Ictax says it rather than I assume it 
Thats great info and help as I could see the above funds are available in the ICtax. But as I see in the financial reports of the funds(I have) have a lot of info. Were the tax authorities able to find the relevant info(Dividend payout) from the report with no further questions asked? Did you contact the ICtax team directly to add these funds or through the Canton Tax office?
Thought of checking the thought process behind considering FLXI/ FLIN, given both ETF’s incur up to 20% capital gains (computed on a daily basis) from the gains at the fund level. This potentially creates a larger differential in tracking error to the underlying FTSE 30/18 capped index.
As a non-resident Indian in Singapore, I like your suggestions to keep it simple with a Indian index funds and (potentially) claim the CG refund under the DTAA. Singapore has no CG tax, so will likely not pay any CG in India (this is in theory, but will have to put this to test in coming months when I redeem some investments).
I feel that this is kind of anomaly in Indian tax system.
Everyone in India is taxed on CGT, everyone buying stocks or ETFs are also taxed on CGT. India claims jurisdiction
But somehow Mutual funds are exempt from this. This is interesting for me and I feel there has to be some logic to explain but why is not clear.
I think at some point this might disappear.
BTW for Singapore, there is another clause. You need to transfer the proceeds back to Singapore to avail benefit
Personally I am using 50% FLXI and 50% Indian funds approach for now.
P.S -: I have read that sometimes the tax officers are not aware (because it’s not very frequent for them) of these treaties and put the case under scrutiny. Which of course can be annoying if you are abroad. So it’s always good to test the waters.
There have been two cases in past. One for Swiss resident and one for UAE where courts confirmed this and revert tax office objection. Hence it’s clear that policy works but still nuisance
I think FLXI shows the real value that would be incurred due to eventual CGT while other ETFs tend to only account when they sell the shares. I think FLXI is more transparent and can avoid a sudden CGT bill when a big sell off happens.
Yes, 100% with you. Bit of an anomaly atm but let’s see if India plugs this by revising Article 13 of DTAA with these countries.
The repatriation of proceeds to Singapore is contentious, hence I’m working with a competent CA in India who has helped other SG based NRI’s in the past on these matters. The simplest path would be to have the AMC (fund house) not deduct CGT based on filing Form 10F with ITD for the respective FY.
I have already established 0 TDS with ICICI AMC using form 10F
But I was referring to the time when someone files tax return and then tax office creates a query
My only concern with this strategy is the compounding effect of the CGT incurred on a daily basis. Less of a concern from a short term investment, but if one is considering holding this over the long term, this will certainly show up a marked deviation in returns.
I don’t quite understand. How is it possible? Underlying shares within the ETF are not changing. So the number of shares within different ETF will be same (for same index)
How ETFs value them is not relevant for the compounding. Right?
Yes, ITD is known to contend such claims, but something to consider when filing returns based on DTAA for sure.
My understanding is that this is accounted for in the daily NAV of the ETF.
https://www.franklintempleton.lu/articles/2024/equity/inevitable-in-india-crowds-cricket-and-capital-gains-tax