investment by NRI in the shares of indian company
This query is : Resolved
26 March 2009
Sir,
An Indian company share was held by a foreign company,British Virgin Islands. In 2004 the shares were purchased by a NRI the purchase consideration being made through Saudi Arabian bank Account.
My doubt is investment in indian company share by an NRI the source being his salary earned in saudi Arabia will attract an income tax? Will there be any tax on the source which he used for purchasing the shares of the Indian Company?
Regards,
Priya
An Indian company share was held by a foreign company,British Virgin Islands. In 2004 the shares were purchased by a NRI the purchase consideration being made through Saudi Arabian bank Account.
My doubt is investment in indian company share by an NRI the source being his salary earned in saudi Arabia will attract an income tax? Will there be any tax on the source which he used for purchasing the shares of the Indian Company?
Regards,
Priya
CA. B.SRINIVASULU
(Expert)
26 March 2009
No for the purchase of shares made by him from his salary earned in saudi arabia is not taxale.
However when dividned is declared on these shares or when he is selling these shares he gains short term or long term capital gain then that dividend or capital gain is taxable.
No for the purchase of shares made by him from his salary earned in saudi arabia is not taxale.
However when dividned is declared on these shares or when he is selling these shares he gains short term or long term capital gain then that dividend or capital gain is taxable.
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