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FCTRS COMPLIANCE

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sudheer kumar (Querist)
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08 December 2025 When Resident sold the equity shares in an Indian Equity Shares in an Indian Private company to a Non resident for a consideration on non repartiable basis.Whether FC-TRS reporting is applicable?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 December 2025 Yes, Form FC-TRS reporting is applicable even when a resident sells equity shares of an Indian private company to a non-resident on a non-repatriable basis. The RBI requires FC-TRS reporting for all transfers of capital instruments between residents and non-residents, regardless of whether the consideration is repatriable or non-repatriable.

If the non-resident acquires shares on a non-repatriable basis, the investment is treated as domestic investment at par with resident holdings. However, since the transfer involves a resident and a non-resident, FC-TRS filing is still mandatory to record the transaction under FEMA regulations.

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