Equity investments India and outside

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Rahul Singh (Querist)

06 July 2021 hello everyone i have some equity purchased so questions regard that.

what is the limit to buy equity out of india?

if i make profit in selling and then I make loss of same amount within same accounting year over other equity then do i have to pay tax over that first profit or that loss will minus that profit?

is there any other taxes other than income tax on out of india equity purchase?

what is the tax free limit of profit from equity from india or out of india?

i run proprietorship business. help is needed

Deepa B

Deepa B (Expert)

06 July 2021 Under liberlised remittance scheme one can invest upto USD 2,50,000 in foriegn securities (listed or unlisted).
On sale of such securities, taxability depends on classification of securities as long term capital asset or short term capital asset. If such foreign stocks are listed in any stock exchange in IFSC, Long term capital gain in excess of Rs.1,00,000 is taxed @ 10%+surcharge and health and education cess else 20%+surcharge and health and education cess. Short term capital gain is taxed at 15% if listed in stock exchange of IFSC else at normal income tax slab rate. Besides dividend income will have different tax treatment.
Loss in one transaction can be set off against the other, subject to the condition that short term capital loss can be set off against short term gain as well as long term gain. But long term capital loss can be set of against only long term gain.

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