Capital gains on foreign investments

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This query is : Resolved

Ashish Tailor (Querist)

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.

Amol S Joglekar

Amol S Joglekar (Expert)

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.

Ashish Tailor

Ashish Tailor (Querist)

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...

Ashish Tailor

Ashish Tailor (Querist)

04 November 2012 and i guess for this securities the holding period should b 1 year to qualify for LTCA

Amol S Joglekar

Amol S Joglekar (Expert)

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.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

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

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