Reporting Capital Gains of NRI in ITR

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I have an NRI client who maintains NRE and NRO accounts in India. She transfers funds to her NRE accounts from her account in foreign country. The balance in NRE account is maintained in INR. She makes all purchase and sale of shares transactions from this NRE account which is in INR currency. My query is - while reporting her capital gains in ITR for her annual tax return, whether I can simply disclose sale, purchase amounts split into before 23 July 2024 and after 23 July 2024 as I do in case of resident individuals or I need to disclose it under Sr. No. 3 of STCG which requires me to convert purchase and sale amounts into original currency and then convert back the STCG into INR as per first proviso to Section 48? It is important to note that all transactions were made in INR as NRE account balance is in INR.

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Reporting STCG for NRI with NRE Account Transactions:-

For NRIs, transactions in an NRE account (in INR) don't typically require conversion to original currency for tax reporting since the transactions are in INR.

Section 48 of Income Tax Act: The first proviso to Section 48 deals with conversion of cost of acquisition and sale consideration into INR for computation of capital gains for non-residents. Since all transactions were in INR via an NRE account, Reporting under Sr.No.3 of STCG might not require conversion as transactions were in INR.

Given the transactions were in INR using an NRE account, the CA can report STCG accordingly without needing to convert amounts into original currency. 

NRIs report Indian capital gains in Schedule CG of ITR-2 or ITR-3, the same schedules residents use. What differs is the withholding: the buyer should have deducted TDS under Section 195 at 20% for LTCG on property or 30% for STCG, and that credit shows in your Form 26AS and gets set off against the capital gains tax in the ITR. For listed equity held in a DEMAT account, LTCG above Rs 1.25 lakh is taxed at 12.5%, same as residents.

If India has a DTAA with your country of residence, Schedule FSI must be filled to claim treaty relief, and you will need a Tax Residency Certificate from your country. We have a [capital gains tax guide for AY 2026-27](https://taxgarden.in/blog/capital-gains-tax-india-ltcg-stcg-ay-2026-27) that covers both resident and NRI treatment with the indexation and exemption rules.

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