banner_ad

LTCG on shares sold in a foreign stock exchange

Tax queries 2006 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?

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details