Dear Friends
Can you any one tell me the taxation implication on capital gains due to sale of equity shares (unlisted) by a NRI. Based on my understanding, I have drafted a small note. Please confirm if this is right.
Thanks in advance
Rajesh
TAX PAYABLE BY NRIS ON LONG-TERM CAPITAL GAINS
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Long-term capital gains of an asset other than a specified asset
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20%
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Long-term capital gains of a specified asset
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10%
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Please see below for definitions of Investment Income / Specified asset
“investment income” means any income derived (other than dividends referred to in section 115-O) from a foreign exchange asset;
“foreign exchange asset” means any specified asset which the assessee has acquired or purchased with, or subscribed to in, convertible foreign exchange;
“specified asset” means any of the following assets, namely :—
(i) shares in an Indian company;
(ii) debentures issued by an Indian company which is not a private company
(iii) deposits with an Indian company which is not a private company
(iv) any security of the Central Government as defined in clause (2) of section 240 of the Public Debt Act, 1944 (18 of 1944);
(v) such other assets as the Central Government may specify in this behalf by notification in the Official Gazette.
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