Capital gains on foreign investments
This query is : Resolved
04 November 2012
Hi All,
Can anyone please let me know whether foreign securities fall within the preview of the Indian Income Tax Act?
If yes, than how does one determine whether it is LTCA/STCA? and what would be the tax computation thereof regarding the tax rate and exemption and the indexation benefit? this query is in regard of an indiviual who is RNOR.
Can anyone please let me know whether foreign securities fall within the preview of the Indian Income Tax Act?
If yes, than how does one determine whether it is LTCA/STCA? and what would be the tax computation thereof regarding the tax rate and exemption and the indexation benefit? this query is in regard of an indiviual who is RNOR.
04 November 2012
Period of holding is 36 months. (For LTCG) Rest of the provisions are same. You can opt for exemptions. Please narrate exact situation so that answer would be more accurate.
04 November 2012
Dear Amol,
the client is RNOR, he works in MNC which has itz subsidary in India. the client had opted for ESOP of the company. now he plans to sell the securities and wants to know the tax liabilty thereof...
the client is RNOR, he works in MNC which has itz subsidary in India. the client had opted for ESOP of the company. now he plans to sell the securities and wants to know the tax liabilty thereof...
04 November 2012
and i guess for this securities the holding period should b 1 year to qualify for LTCA
06 November 2012
Your guess is correct so far as it relates to "share of a company". If ESOP is for a company as defined under income tax act, 1961, the period is 12 months. Foreign securities are on different footing.
16 November 2012
Hi Ashish,
From your query I understand that your client is RNOR and is willing to sell his ESOP's outside India.
If my understanding is correct then there should be no tax liability as for RNOR only income accruing or arising in India shall be taxable.
Anuj
femaquery@gmail.com
From your query I understand that your client is RNOR and is willing to sell his ESOP's outside India.
If my understanding is correct then there should be no tax liability as for RNOR only income accruing or arising in India shall be taxable.
Anuj
femaquery@gmail.com
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