Calculation of Capital Gain on foreign shares

This query is : Resolved

Simran Katyal (Querist)
Follow

05 August 2016 Hello, My query is that if a person (indian resident) holds shares of Google Inc, USA (transactions: sale/purchase will be in USD only). So how to calculate capital gain on this. According to my knowledge, treatment is as below, eg: Purchase price = USD 200 sale price = USD 250 Cap gain = USD 50 × Exchange rate as on date on sale(Suppose Rs. 60 per USD) = Rs. 3000 If we receive Rs. 3243 in bank account, I think to consider the balance i.e. Rs. 243 as forex gain. (can be loss too) Please confirm whether I am right, or any other treatment should be there.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
Follow

05 August 2016 In my view this situation is not provided in the Income Tax Law. As per FEMA, a Resident cannot subscribe the shares of a foreign company except for ADR or GDR or some other foreign currency bonds as permitted.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
Follow

05 August 2016 You seek further, any other expert may help you.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now