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Foreign Asset Taxation in hands of Resident

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Hello experts,
How is the calculation done for an Indian Resident assessee having Foreign Asset.

for eg. Shares acquired in foreign company from NYSE on 01-sept-2016 for 100$ and sold on 01-oct-2020 for 250$.

Exchange rates: For eg
01-Apr-16 : Rs 40/$
01-sept-16 : Rs 50/$
01-oct- 20 : Rs 70/$
31-mar-20 : Rs 90/$
Replies (13)

Capital gains taxation is applicable https://www.indiainfoline.com/article/research-articles-ideas/tax-implications-of-personal-foreign-investments-H T M L

Yasaswi Mam, I have read the article, but my concern is how to calculate Capital Gain on such income.
As there are two factors, currency fluctuation and value appreciation.

Foreign currency fluctuations of revaluation of asset is treated as similar to PPE standard revaluation. This is unimportant as you must have already treated it in between years.

When you sold the asset in October, translate the gain, then apply capital gains tax formula.

Foreign currency fluctuations of revaluation of asset is treated as similar to PPE standard revaluation. This is unimportant as you must have already treated it in between years.

When you sold the asset in October, translate the gain, then apply capital gains tax formula.

Sry I meant fluctuations from revaluation...

Take exchange rate of Sept 2016 and Oct 2020

If it is personal for personal, there is no unrealised gains on currency fluctuations, Just apply 

March 20 rate- April 16 rate

tax 10% will be applied on anything above 1,00,000₹ profit and if it is a loss, it is carry forward.

I meant sold date - purchase date like Saurav mentioned

Yesasvi 100000 exemption will not apply for foreign equity shares

Verendra is it true, then they have to use a different slab rate, let me check, ok yes, If foreign company shares are held for more than 24 months, gains arising therefrom are treated as long term capital gains, taxable at 20% (plus applicable surcharge and cess). 

lower of the: 

FMV-&-Sale-proceed
 


After determining the lower value between FMV and sale proceeds, you have to determine the higher value of the following: 

Cost-of-acquisition
 


This higher value of Rs 2 lakh will be taken as your cost of acquisition in order to ascertain the long-term capital gains chargeable to tax. LTCG will be calculated as: 

LTCG

 

finally it must be like = 20,000*20

https://m.economictimes.com/wealth/calculators/ltcg_calculator

 

Yesaswi this grandfathering provision will also not apply to foreign equity
Income Type Taxability in the US  Rate Taxability in India Rate Comments
Dividends Yes 25 % Yes Applicable slab rates Credit for US taxation available 
LTCG No Yes 20% Applicable surcharge and fees
STCG No Yes Applicable slab rates

https://cleartax.in/s/tax-implications-indian-residents-investing-us-stock-markets#Ltc

Verendra I think this is it. No more compl cities 

Yes this must be final.
xd


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