Urgent Capital Gain issue

Listed Company  Shares acquired in India in 1996 while being a resident are sold by a Non-Resident Indian now [in the year 2009] . Is it exempt from Capital Gain under section  10(38)?

Replies (8)

No it wont be taxable.as the residential status of the assessee as on the date of assessement is to be computed. as the status is non resident so it wont be taxable as the income is neither accruing not to be received in India.

It will be taxable only if shares are of indian company..It will deemed to be accrued in india only..

Exemption u/s 10 (38), i:e LTCG on which STT has been paid at the TIME OF SALE  is available to ALL ASSESSES IRRESPECTIVE  OF THEIR RESIDENTIAL STATUS (Be it Individual, Company, Firm , etc)

Reffer Income tax singaniya u will come to know

 

 Taxable as the source of income is on the indian soil and thus deemed to be accrued in India therefore taxable under the regular method of taxablity.

I thank u all for ur feedbacks and clarifications. I agree that the income is deemed to accrue and arise in India, but after that what is the next stage? For example , even agricultural income is income accruing or arising in India, but it is exempt u/s 10 [1].

Likewise, the income arising on sale of equity shares through a recognised stock exchange, and suffering Securities Transaction tax is income arising in India only. But this is a sale after the year 2004, in which Section 10[38 ] was introduced. It says , such a sale is exempt from Tax irrespective of residential status. This is my interpretation, and Mr Amir and Mr Ramil share my views.

AS ACC TO ME, IT SHALL BE EXEMPT IN THE HANDS OF ANY ASSESSEE BECAUSE SEC 10(38) DOES NOT PROVIDE THE  EXEMPTION TO RESIDENT ONLY.....SO WHILE FILING HIS RETURN INCOME EXEMPT MUST BE SHOWN IN HIS RETURN.....

Yes it is exempt from tax u/s 10 (38)......

Income accrue in India but LTCG on shares on which STT is paid is exempt under IT Act....

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