Formerly NRI still keeping overseas stocks due to loss and in anticipation of a price rise

Income Tax Income from Other Sources
1

I am writing to seek your guidance regarding the declaration of stock holdings in our income tax return filing process through Zerodha and Quicko .

Here’s a brief background:

  • My wife is a former NRI who, while working abroad, purchased some shares online from the Hong Kong Stock Market .
  • After returning to India several years ago, she has been unable to sell these shares as their value dropped significantly. As a result, she continues to hold them, anticipating a future price recovery.
  • Additionally, she also holds stocks purchased via Zerodha from the Indian Stock Market , which we declare regularly during tax filing.

We are currently filing our income tax returns through Quicko , integrated with Zerodha, and find it very convenient with just a few keystrokes.

Our query is:
How can we declare the foreign shares (Hong Kong Stock Market) that we still hold in our possession at the time of tax filing through Zerodha and Quicko ? We want to ensure compliance with all applicable regulations while disclosing these holdings.

Your expert advice on this matter would be greatly appreciated. Please let us know if any additional steps or documentation are required for this process.

Thank you for your support and assistance. Looking forward to your guidance.

Best regards,
Mathew Varughese
:iphone: Phone: 8129109255

2

Hi @8129109255,

As per the provisions of the Income Tax Act and Rules, all foreign assets and holdings must be disclosed in “Schedule FA” while filing the Income Tax Return (ITR) for the relevant Assessment Year.

In your wife’s case, the foreign shares should also be disclosed in the ITR to ensure compliance with the tax regulations.

I hope this clarifies your query. If you need further assistance or clarification, feel free to reach out to me on Instagram at @FinTaxSnippets (https://www.instagram.com/FinTaxSnippets).

Thanks
CA. Pulkit Garg