One of my friends has transfered the shares which are listed on Nasdaq for 23000 dollars (1000shars x 23$ per share)as on Aug 09. He has got these shares as ESOP for (30cents per share x 1000shares)in march 2007. Please suggest the way by which he can save tax u/s. 54.

Dear Sonal,

Your friend cannot find any place to claim exemption under section 54F as the Capital Assets transfered i.e. Shares listed in Nasdaq, was short term Capital Asset.

Also you need to take care of following;

1) Claim all possible cost in relation to purchase/excercise of rights.

2) Income/Capital Gain is to be considered after converting USD in Rupees as per rule 115 of IT Rules.

3) Claim benefit of Indo-US DTAA for taxes paid in US.

4) Your friend may also require to repatriate such amount in India with in Six months by virtue of FEMA.

Thanks and Regards

How it is short term capital asset? Its a long term capital assets as transfered after 12 mths of aquisition(for shares its 12 mths criteria for long term capital asset). almost after 29mths after aquisition....

Dear Sonal,

I have over looked the facts and apologize for same.

In such case, it is possible to claim benifit under section 54F by investing in Residential property.

Thanks

No need to apologize. It happens.Thanks a lot. I got other links also like FEMA prov & benifit of taxation in US.

Hey is your friend a non-resident?

Please see that there is a transfer of assets which are not situtated in India.

It cannot be taxed U/s 9 if he is non resident

No he is not non resident. but whether provisions are different for the shares listed on Nasdaq?