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Does grandfathering rule ( Jan.31.2018) apply to foreign shares

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Ramakumar M

17 Points Posted on 28 July 2021

Hi All,

I would like to know if the grandfathering rule (i.e. profits in equity are grandfathered until Jan.31.2018) applies also to foreign shares held by a resident Indian.

I am a resident Indian and I bought some foreign shares in 2002. If I sell them now, will I be able to grandfather the profits till Jan.31.2018, or does the rule apply only to Indian equity / mutual funds ?

Thanks in Advance..

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Quick Summary

This discussion clarifies whether the January 31, 2018 grandfathering rule for capital gains applies to foreign shares held by resident Indians. The consensus is that the rule does not extend to foreign shares, meaning profits from these will attract capital gains tax at 20% and will not benefit from the ₹1 lakh exemption. However, indexation benefits may still be available for foreign share sales.