LTCG on sale of foreign stocks

Dear Sir,

If you are a resident in India, you can adjust long term capital gain against the exemption limit of 2.5 lacs.

This means if your taxable income before claiming the deductions under chapter VI (I.e. 80C, 80D etc), is less than exmeption limit. You don't need to pay any taxes.

However, if your taxable income is more than 2.5 lacs, you have to pay 20% tax on your capital gain over and above the limit of 2.5 lacs.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Hi,

If you are a resident in India and you have Long Term Capital Gains, then the same will be taxable at 20% u/s 112. Effective rate will be 20.6% including Education Cess. However, if you do not have any other income, then the same will be taxable at 20% on the Capital Gain Amount as reduced by the basic exemption limit of Rs 2.5 Lakhs.

Note: If the Total Income is below Rs. 5 Lakhs, then you can claim Section 87A Rebate up to Rs. 5,000

Dear Sir,

First of all please confirm whether you are US green card holder or not ?

If yes than this amount shall be taxable in USA also.

For india please note that this will be long term capital gain and shall be taxed @ 20% with indexation.

Yes Tax Bracket shall be applicable.

You can surely discuss the more questions you have or you can contact me directly.

Dear Sir,

Yes, it is taxable in India @ 20% of LTCG u/s 112 of the Act.

However, if your total income is up to Rs. 250000/- then you will not be liable to pay any tax.

Hello Sir,

If you are an Indian Resident as per the Income Tax Act, then you may very well claim the Basic Exemption Limit of Rs.2.5 Lacs and pay tax only on the balance amount which is left uncharged i.e over and above Rs.2.5 Lacs @ 20% excluding cess.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Hi,

I guess you have selected Non-resident in Residential Status in the ITR-2. If you are a non-resident, then you have to pay tax at 20% on entire Long-Term Capital Gains.

As per Section 112, the benefit of initial 2.5 Lakhs exemption is available only to a Resident in India. If you are a non-resident then you cannot avail the 2.5 Lakhs Exemption.

Check the residential status as per Section 6 of Income Tax Act. If you a resident, then see whether you are ordinarily resident or not ordinarily resident.

Select the proper Residential Status in the ITR-2 utility and then submit the Form.

Dear Sir,

Do you find the said error in your computation of tax sheet also. Since it should be limited to 2,50,000/- exemption benefit only.