Capital gain

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This query is : Resolved

Rounak Jain (Querist)

24 May 2013 IF A NON RESIDENT INDIAN TRANSFERS HIS SHARES (OF AN INDIAN COMPANY) WILL HE HAS TO PAY CAPITAL GAIN TAX AND IF YES HOW CAN INDIAN LAW BIND HIM TO PAY SUCH TAX.

Suresh Mittal

Suresh Mittal (Expert)

24 May 2013 Yes he will have to pay Tax on Capital Gain, it the total income is more than maximum amount which is not taxable. Further in case if it is LTCG, he would get benefit for same too. The payment of these sale would be subject to TDS u/s 195. Further in case if this amount is not repatreiable, for the recovery of tax the said bank account can also be seized.

Rounak Jain

Rounak Jain (Querist)

25 May 2013 and if the said shares were transferred to a non resident indian

Rounak Jain

Rounak Jain (Querist)

25 May 2013 and how can indian government bind a non resident on that...

tell me section or any case law...

Suresh Mittal

Suresh Mittal (Expert)

27 May 2013 The sgares of Indian company are to be transferred in the name of the purchaser and for that there are certain restrictions and formalities under FEMA. Thru RBI, before competion of transfer formalities, these can be enforced

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