- Foreign exchange rate would be of actual date of purchase and sale.
Capital gains on foreign investments made while NRI
Hello, I had made some equity index fund investments in US when I was a resident in US, and a non-resident in India. Now I have returned to India and I am an ordinary resident now. I am planning to sell a few units of the said investment. Would the gains be calculated in foreign currency and then converted to INR on date of transfer, or would the cost of acqusition and full value of consideration calculated separately using exchange rates on the date of acqusition and date of transfer respectively?
Asked 4 years ago in Capital Gains Tax
Dear Sir,
It would be the cost of acquisition and full value of consideration calculated separately using exchange rates on the date of acquisition and date of transfer respectively.
The rate of exchange would be on the date of purchase and sale respectively and you are saying you purchased it when you were NRI and now you are resident so i assume its long term asset if held for more than 2 years then you would also get benefit of indexation.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hello,
First, the cost of acquisition and full value of consideration would be converted using exchange rates on actual dates, and then the capital gain would be calculated.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Hello Sir,
The rate of exchange would be the cost of acquisition and full value of consideration calculated separately using exchange rates on the date of acquisition and date of transfer respectively
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