Income Tax from foreign shares in India and its taxability

Income Tax Income from Business or Profession
1

I am a permanent indian resident. If I wish to receive foreign income from stocks trading outside India then will that amount be taxable?

2

Hey @Nihal ,

Since you hold the status of a resident, your global income is taxable. Thus, you must report the income on sale of foreign shares and pay tax on it at applicable rates. Check out our Learn Center resource for more information about NRO and NRE Accounts- Guide: Income Tax for NRO and NRE Accounts

3
4

Hey @Nireka

Indian investors can invest in US stocks from India subject to RBI’s LRS guidelines. There may some RBI restrictions to hedge the foreign stock positions. For tax implications, any dividends income from foreign stock will be taxed in India subject to India- USA DTAA, as dividend is taxed @25% in USA.

Any capital gain from sale of foreign stocks are also taxed in India. When foreign stocks are sold within 24 months then it will be treated as short term, other wise long term. In case of short term gain, slab rates will apply and in case of long term gain, 20% rate with indexation or 10% without indexation will apply. Moreover, investors can claim foreign tax credits to avoid double taxation.

5

Can I claim credit of the tax deducted in the USA on income from the sale of shares of my company (ESOP)?

6

Hi @Dixita

If you are a resident in the financial year, you must report such foreign income in the ITR in India. As per the DTAA agreement between India and the USA, the same income is not taxable in both countries. Thus, if you have paid tax on such income in USA, you can claim the credit of such tax paid by filing Form 67. Tax relief shall be lower of tax paid in USA or tax payable in India and can be reduced from total tax liability in India.

You can refer to the below article for detailed provision of DTAA between India and the USA: DTAA between India and USA - Learn by Quicko
https://learn.quicko.com/form-67-claiming-foreign-tax-credit

Hope this helps :slightly_smiling_face:

7

Hi, Vivek here.
My wife works for a software company and was on site in Netherlands for a period of 3 months. This was in 2019. As per her form 16, she is eligible for exemption u/s 90/90a, calculated exemption as per her company Form 16 is 17,000 rupees. She has followed all procedure while filling her ITR, but, she has received notice from IT authorities to pay the tax amount with interest. When consulted with customer care number, they asked us to file a revised return, which again has been rejected…now, they say pay 21,000 rupees along with interest. Kindly guide how to proceed further…we are worried…Thank you. Vivek 9686969957

8

Hey @Vivekramaiah, you shall soon receive a call from our team for better understanding your situation. I would also like to advise you to not share any personal details on the public forum for privacy reasons.

9

Hi, I am filing ITR through Quicko website, but I am unable to find a Scheduled FA section to specify the Foreign Listed Shares that I am holding. Also invested through IndMoney in some of the foreign listed company, do I need to list those as well.

10

Hey, currently we do not support reporting foreign assets on our platform. However, it is in our pipeline and we will keep you posted regarding the same

11

Hi,

I got some profit by selling shares from US equity in groww app. Where should I mention details about this when filing tax in quicko portal? Any sample screenshot on where to fill would be helpful. Also, what should be the equivalent INR rate for filing.

For US stock dividends, tax is already deducted in US. Where should I mention about these tax credits in quicko portal. A screenshot will be helpful.

12

Hey @pushpasooraj presently we do not support reporting of foreign shares on our platform. However, it is in our pipeline and we will keep you posted regarding the same

13

I have already filled my IT in quicko for all other sections. Only this section is pending. How can I proceed ahead?

14

Hey, you can download the JSON and make changes to it through utility

15

Would it be possible if someone from “Meet” can help me with filing my foreign shares

16

Sure, visit meet.quicko.com , enter your income situation and we will match you with a tax expert specialising in your income situation

17

Hi, I am a resident Indian, and trading equities in US stock exchange. My question is related to tax liability on the capital gains. Since I am resident Indian, I understand there is tax liability in India, but is there a tax liability in the US too for the capital gains? In other words, is there a tax liability in both India and US or is it just India for the capital gains coming from trading US stocks. Can someone please clarify. Thank you, Venkat

18

Hey

  1. As a resident individual if you receive dividend from a US stock, it will be taxed at the rate of 25%, the rest will be given to you. Now that earning will also be taxed by the Indian government according to the prevailing tax rates. However, owing to the DTAA signed between India and the US, the tax that has been deducted in the US can be claimed as foreign tax credits against the tax liability in India.

  2. However, when it comes to capital gain from US shares, no taxes are levied on profit or gain incurred at the time of selling stocks in the US. But contrary in India, capital gain income will be taxable as per Indian tax laws.

You can read more about it here

19

is forex trading legal in india ?
can i trade on

Forex broker ECN, Online Forex Trading, CFD Trading - OctaFX (octaindia.net)

is it OTC market platform ?

is trading allowed and legal in india ?

20

Hey, it is legally allowed to trade Forex within Indian Exchanges like BSE, NSE, and MCX-SX.