| Question And Answer | |
|---|---|
| Subject: | TAXABILITY OF CAPITAL GAINS ARISING OUTSIDE INDIA |
| Category: | Income-Tax |
| Querist: | K A VAIDYALINGAN |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Capital Gains, non-resident taxation, set off, taxability |
| Date: | June 30, 2023 |
For assessment year 2023-24, a resident assessee, an individual, has capital gains on sale of shares of companies registered in Singapore. All investments were made by him when he was in Singapore in Singapore Dollars in 2014. These shares were sold in financial year 2022-23 and proceeds were received in Singapore dollars in Singapore and were deposited in bank account in Singapore.
Since for A Y 2023-24 he is a resident and ordinarily resident under Income tax Act, he is required to show capital gain/loss arising from the sale of those shares. Queries are (a) whether the gains/losses can be treated as long term? (b) Whether the benefit of indexation can be claimed and (c) whether losses arising therefrom can be set off against long term capital gains arising on sale of shares of companies registered in India?
Irrespective of whether the shares are listed or unlisted, LTCG on the sale of foreign shares is taxed at 20% tax with the benefit of indexation as per section 112 of the Act. Yes, set off of losses on the sale of shares in India would be allowed to the assessee.