As a non-resident, is there a tax liability on exiting Indian MFs?

I have been investing in mutual funds for the past four years. Last year, I moved to Dubai and am currently a non-resident Indian NRD). Say, if] exit all my mutual fund investments now, would I have zero tax liability? —Name withheld on request.

- Parizad Sirwalla

I am assuming that you qualify as a non-resident (NR) in India, as per the relevant income tax provisions, and also that you do not qualify as a deemed resident of India under the relevant income tax provisions. Units of mutual fund qualify as capital assets, and any gain or loss arising on account of transfer of such mutual fund units qualifies as a capital gain or loss for tax purposes. As the situs of these capital assets is in India, any such capital g