Celebrate Freedom with 20% OFF on CAclubindia Pro Subscription. Use Code: FREEDOM20

Capital Gains on sale of US based Securities

Tax queries 84 views 1 replies

Laila Khalil

Director

21 Points Joined September 2024

Hi,

Seeking expert advise on the following scenario:

I currently hold US stocks in an E-trade account. These RSU equity stocks were granted as part of my salary package and were fully vested in 2021. I would like to understand if I can sell these stocks and invest them in Indian equities or a managed portfolio kind of product. What would be the tax implications of doing so and is there a way I can be exempted from paying taxes or have my CG tax liabilities offsetted. Also, do I require to pay taxes both in the US and in India?

If anyone has knowledge on this or has handled such a matter previously, please get in touch. Thanks

Regards,

Laila

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8991 Points Joined December 2011

Congratulations on your vested RSU equity stocks! You're wise to explore options for selling and reinvesting them. I'll address your questions: 1. _Selling US stocks_: Yes, you can sell your US stocks and invest in Indian equities or managed portfolios. 2. _Tax implications_: - US taxes: You'll pay capital gains tax (CGT) on the profit from selling US stocks. CGT rates vary based on your tax filing status and the holding period. - Indian taxes: When you invest in Indian equities or managed portfolios, you'll be subject to Indian tax laws. You may be eligible for tax exemptions or offsets, depending on the specific investment products and your individual circumstances. 3. _Tax exemptions or offsets_: - US taxes: You may be eligible for a foreign earned income exclusion or foreign tax credit, which could offset some US tax liabilities. - Indian taxes: Certain investment products, like Equity Linked Savings Schemes (ELSS), offer tax benefits. Consult a tax professional to explore available options. 4. _Double taxation_: Yes, you may be subject to taxation in both the US and India. However, you can claim foreign tax credits in one country for taxes paid in the other, which may reduce your overall tax liability. To minimize tax implications and optimize your investments, consider consulting: 1. A US-based tax professional to understand US tax implications and potential exemptions. 2. An Indian tax professional to understand Indian tax implications and potential exemptions. 3. A financial advisor to explore suitable investment options in India. Please note that tax laws and regulations are subject to change, so it's essential to seek professional advice for your specific situation.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register

Recent Threads

More recent discussions | Post

Related Threads