Sale of shares from non resident

For a standard transfer of shares from a Non-Resident to another Non-Resident (both holding on a repatriation basis), there is no floor price or restriction under FEMA. However, if the transfer shifts the holding from a non-repatriable to a repatriable basis, FEMA pricing guidelines will immediately apply. Regardless of FEMA rules, the transaction should still occur at Fair Market Value (FMV) to avoid severe adverse tax consequences under Sections 56(2)(x) and 50CA of the Income Tax Act.

Many thanks Sir.

So, as a corollary, is the selling and purchasing non resident shareholder required to pay capital gain tax in India? And they need to have PAN in India ?

Regards

CA CS Dipjyoti Majumdar