tax on gains on ESOP of foriegn equity markets

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This query is : Resolved

Shruti Jain (Querist)

02 September 2009 Hi All,
How tax will be calculated on gains received from sales of shares of foreign equity markets?

Points to note
1) All transaction is made on foriegn
equity market by a foreign broking firm.
1) The difference in purchase and the sale
date is more than a year.
2) There is no tax deducted at source.
3) Also please provide tax rates if the
the difference of purchase and sale date
is less than a year?

regards

CA Shail Mishra

CA Shail Mishra (Expert)

19 December 2009 Shruti u have not written whther tax payer is NRI or ROR or RNOR.
Assuming tax payer is ROR and all companies are foreign company Following would be answer of your Q
1 Since diff. is more than one year Long term cap gain will arise. Tax rate will be normal rate for long term cap gain i e.20 %
2 No TDS is deducted therefore double taxation will not be there.
3. if sold withen one year short term capital gain will arise rate will be 30%

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