Calculation of Capital Gain on foreign shares
This query is : Resolved
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.
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.
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Rental income of jointly held property
- FEMA regulation Act. for inward remitance
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
