Tax implications for sell in foreign stocks

Tax implications for sell in foreign stocks

Hi,
My company has a employee stock plan under which the enrolled employees can buy stocks at discounted price. Our company is listed in NYSE and not in India. The perquisite tax has been deducted by the employer on the discounted amount (FMV - allocation price). But when I am going to sell those stocks what amount should be paid as the capital gain tax on the profit. Shall I have to pay the tax according to my tax slab or I have to pay them according to the STCG/LTCG rules for securities not traded in listed stock exchanges (20% with indexation or 10% flat).The holding period of the stocks is more than 1 year.
Thanks,

Asked 8 years ago in Capital Gains Tax

Hi,

You have to pay long term capital gain taxes for securities not traded in listed stock exchanges (20% with indexation or 10% flat).

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

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar

CA, Mumbai

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Talk to Abhishek Dugar

Many thanks for the prompt answer. And if the holding period is less than 1 year then what would be the tax implication. 
Thanks,

Asked 8 years ago

In that case, it will be a short term capital gain taxes and you have o pay taxes as per slab rates.

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

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar

CA, Mumbai

3576 Answers

183 Consultations

Talk to Abhishek Dugar

Hello,

It will be considered as a Normal Capital Gain. If the holding period is more than 24 months then the tax payable is 20%, if it is less than that then the tax payable is as per your slab rate.

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