TREATMENT OF FOREIGN ASSET UPON REDEMPTION ON RESIDENT STATUS
This query is : Resolved
23 June 2023
AS A NRE I INVESTED USD 10,000 IN AN INVESTMENT PRODUCT ON 22 JAN 2018. I RETURNED TO INDIA ON 22 JAN 2019. FOR FY2018-2019 I FILED MY IT RETURN AS A NRE; AND FOR FY2019-2020 & FY2020-2021 I FILED MY IT RETURNS AS 'RESIDENT NOT ORDINARY RESIDENT' I.E. RNOR STATUS. FOR FY2021-2022 I FILED MY IT RETURN AS A RESIDENT. DURING ALL THESE PERIODS I HAVE DISCLOSED THE INVESTMENT AS A FOREIGN ASSET IN MY IT RETURNS.
THE INVESTMENT WAS REDEEMED ON 22 AUGUST 2022 AND THE SALE PROCEEDS OF USD 11,700 CONVERTED AT 78.09 I.E. RS. 9,13,653 WAS RECEIVED IN MY RESIDENT ACCOUNT IN RS.
ON 1ST APRIL 2021 WHEN MY TAX STATUS CHANGED TO RESIDENT FROM RNOR THE INVESTMENT VALUE WAS USD 12,320; WHICH WHEN CONVERTED AT TT BUYING RATE OF 72.5 STOOD AT RS. 8,93,200.
AS CAN BE SEEN FROM ABOVE THERE IS A USD FALL IN VALUE OF INVESTMENT WHEN COMPARED TO THE VALUE AT THE START OF FILING AS A RESIDENT I.E. 12,320 LESS 11,700 I.E. USD 620; AND AT THE SAME TIME THERE IS AN EXCHANGE GAIN ELEMENT ALSO WITH THE RATE GOING UP FROM 72.50 TO 78.09.
APPRECIATE THE APPROPRIATE TAX TREATMENT ADVISE ON THE ABOVE FOR FY2022-2023.
THE INVESTMENT WAS REDEEMED ON 22 AUGUST 2022 AND THE SALE PROCEEDS OF USD 11,700 CONVERTED AT 78.09 I.E. RS. 9,13,653 WAS RECEIVED IN MY RESIDENT ACCOUNT IN RS.
ON 1ST APRIL 2021 WHEN MY TAX STATUS CHANGED TO RESIDENT FROM RNOR THE INVESTMENT VALUE WAS USD 12,320; WHICH WHEN CONVERTED AT TT BUYING RATE OF 72.5 STOOD AT RS. 8,93,200.
AS CAN BE SEEN FROM ABOVE THERE IS A USD FALL IN VALUE OF INVESTMENT WHEN COMPARED TO THE VALUE AT THE START OF FILING AS A RESIDENT I.E. 12,320 LESS 11,700 I.E. USD 620; AND AT THE SAME TIME THERE IS AN EXCHANGE GAIN ELEMENT ALSO WITH THE RATE GOING UP FROM 72.50 TO 78.09.
APPRECIATE THE APPROPRIATE TAX TREATMENT ADVISE ON THE ABOVE FOR FY2022-2023.
23 June 2023
20% long term capital gains tax payable on 9,13,653 less 8,93,200.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Putting a heading on received mail
- Gift Received from nonblood relative
- Reprocessing of rectification order AY 2025-26
- Section 50-fixed asset-->building ceases to exist
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Regime change
- Consolidated financials
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
