LTCG on shares sold in a foreign stock exchange

2011 views 7 replies

Mr.x sold shares of xyz inc. which is traded on New york stock exchange. Mr.X is ordinarily resident in India. Is Mr.X liable to pay tax on capital gains if

1. shares were held for less than 1 year

2. shares were held for more than 1 year

3. Mr.X sold 'Options' instead of shares

4. Mr.X received such shares under ESOP from his company

Replies (7)

1. Yes
2. Yes
3. Would be taxable as business income
4. Yes

Even long term capital gains would be taxable in case of shares sold on the exchange as STT has not been paid on the sale of shares.

Thank you for the clarification. Is indexation benefit available on such transaction?i.e. can it be taxed at 20% after availing indexation benefit  Or can it be taxed at 15% without indexation?

Can Transaction fee charged be shown as a deduction from gross sale proceeds?

Yes it can be deducted as a cost of transfer

Is indexation benefit available on such transaction?i.e. can it be taxed at 20% after availing indexation benefit  Or can it be taxed at 15% without indexation?

Is indexation benefit available on such transaction?i.e. can it be taxed at 20% after availing indexation benefit  Or can it be taxed at 15% without indexation

To classify as short term or long term for shares sold in us stock exchange by person resident in india does  holding of 12 months or 36 months which period shall be considered?

 

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