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How does the taxation of investment income vary between different countries?

Curious about Taxes Investment

How does the taxation of investment income vary between different countries?

The taxation of investment income can vary significantly between different countries. In India, for example, the tax treatment of investment income depends on the type of investment and the investor's tax status.

For residents, dividends received from domestic companies are taxfree up to INR 1,000,000, and longterm capital gains from equity investments are taxed at 10% (if the gains exceed INR 1,00,000). Shortterm capital gains are taxed at a higher rate of 15%.

Interest income from fixed deposits and bonds is taxed as per the applicable tax slab rate. However, there is a deduction of INR 10,000 for interest income earned from savings bank accounts.

For nonresidents, dividends and longterm capital gains from equity investments are subject to a tax of 20% (plus surcharge and cess). Shortterm capital gains are taxed at a higher rate of 30% (plus surcharge and cess).

It's important to consult a tax professional or financial advisor to understand the specific tax rules and regulations in your country or region.

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