Capital gain of selling shares equity

- Firstly you need to check whether gain is long term or short term gain. In cas of long term, there is exemption of 1 lacs and thereafter it would be taxable. In short term there is no exemption and gain is taxable at 15% flat rate.  You have to share details to check any additional tax liability. You may consult telephonically.

Dear Sir,

Hope you are doing well !!

Capital gains tax rate from sale of shares are based on holding period.

• What is the period for which the shares you have been held?

In case of shares, the long term capital gain is levied if the holding period is 1 year or more.

The short term capital gain tax is charged at the rate of 15%  if held for less than 1 year, while long term capital gain is charged at the rate of 10% if the gain is above Rs. 1 lakh.

-However,You can claim the credit of taxes paid in foregin country while filing ITR in India.

As per the tax laws of India, sections 90 and 91 of the Income-tax Act deal with the concept of FTC. Section 90 discusses claiming of FTC in a case where India has entered into a Double Taxation Avoidance Agreement (DTAA) with another country.

Under these sections, if the taxpayer is a resident of India, and he has paid taxes outside India, he can claim a credit of such foreign taxes paid against his tax payable in India.

In accordance with Rule 128, in order to claim FTC, the taxpayer is required to file following documents on or before due date of filing of return:

1. A statement of :

• foreign income offered to tax
• foreign tax deducted or paid on such income in Form No. 67

1. Certificate or statement specifying the nature of income and the amount of tax deducted therefrom or paid by the taxpayer :

• From the tax authority of the foreign country
• from the person responsible for the deduction of such tax
• signed by the taxpayer

1. Proof of payment of taxes outside India

We may assist you in entire procedure. 

It is advisable to take a phone consultation for detailed discussion.

Hi,

Yes, you will have to show this income in your ITR under the head capital gain. Depending upon your tax liability and the TDS deducted, it is possible that you will have to pay more tax but it's unlikely.

Further, whatever taxes you pay in India, you can claim the tax credit of those in the country where you are resident.

If your income is above the taxable limit it is mandatory to file the ITR in India also. And this income will also be reported in ITR.

Hi

Yes you need to show capital gains in your ITR

Yes you surely have to show income from such stocks because TDS has already been deducted.

I think the PMS would have already deducted required TDS so there wont be much tax.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hello,

Yes, you will have to declare this capital gain income under capital gain head in your income tax return.

Whether you will have to pay additional tax on capital gain would depend upon the nature of the capital gain, long or short term, and rate of TDS deduction already made.

I hope this answer satisfies your requirements. It would be advisable to hire a practicing CA for the proper preparation and filing of your income tax return.

Regards,

CA Hunny Badlani

Yes sir you need to show that amount in your IT Return

Since its only income from capital Gain you dont have to pay any further tax in india, infact with the proper working we can get refudn also we are doing it presently for many of our client and we can plan it for you as well.