Taxation of foreign source ltcg income of indian resident

Dear All: 

I searched this forum as well as other sources on net, however couldn't find clear answers.

These questions are about taxation of foreign (in this case source is USA) income of an Indian resident.

1)  Long term capital gains arising from selling of mutual fund units and shares traded on NASDAQ or NYSE.

a) Which schedule this income needs to be declared in ITR?

(i) as income from other sources (Schedule OS)  or

(ii) as a LTCG (Schedule CG) ?

b) Is there difference (similar to Indian sourced income) between taxation of foreign source debt MF and equity MF ?

(For e.g., In India

i) For Debt MF LTCG: holding period 3 yrs and 20% tax rate after indexation, or 10% without Indexation for Debt MF.

ii) For Equity MF LTCG: holding period >1 year, tax rate 10% for amount more than 1 L, no indexation)

b) What is the asset holding period requirement for long term capital gain consideration?

E.g., do you need to hold such (debt as well as equity) foreign assets for more than 3 years?

c) Can you get indexation benefit,

(i) if held for more than 3 years, and

(ii) what if it is held for less than 3 years but more than 1 year?

I would really appreciate response from knowledgeable sources.

With best regards,

Syamkumar

 

Replies (1)

It should be declared as LTCG income if it fulfills period of holding criteria.

No, there is no difference because wordings specified in act is shares and mutual funds and not Indian shares and mutual funds or foreign shares and mutual funds.

Holding period for debts is 3 years and for MF and shares is 1 year. 

Yes, in case of long term gain indexation benefit is available.

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