Dear Members
Foreign national M sells his shares of Indian company to N who is also a foreign national.
Is the capital gain arising in hands of M taxable in India?
If so. how will M pay tax to Indian government?
Please advise.
Regards
CA Dipjyoti Majumdar
Yes, capital gains are taxable in India in hands of foreign seller M.
Buyer N must deduct TDS under Section 195.
Seller M must file return in India and can claim DTAA relief if applicable.
Incidence of taxation is applicable here.
Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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T R SOOD & CO
New Delhi
CA Inter
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CAclubindia
