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.
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.
I am using Quicko platform for filing IT return. Thanks for nice interface!
I am working in US based MNC. I have got ESPP shares with 15% discount in January 2022 for which company has done perquisite tax deduction as applicable. I have sold the shares in Feb.
Now I want to list these shares in capital gain/loss section. When I go for adding foreign listed shares, it asks for buying/selling prices in Rupees. But I got and sold the shares in dollar and then transferred them into India. How do I list buying/selling prices in INR. Also what charges should I include as expenses e.g. can I include commission by bank for dollar → INR conversion. Also can I include 15$ commission by foreign broker for transferring selling amount.
Quicko didn’t ask me for foreign asset Schedule FA? Do I need to fill it
In order to convert the buy and sell values for your RSU, as per rule 115 you shall use the TTBR conversion rate of the last day of the month previous to which the sale occurred. You can claim for all transfer expenses that you have incurred exclusively for the execution of such a transaction. Also as it is a Short term transaction tax shall be levied at slab rate.
As you have foreign assets and income you have to fill Schedule FA and FSI as well. As of now, we don’t support these schedules on Quicko.
I am using Quicko platform for filing IT return. Thanks for nice interface!
I am working in US based MNC. I have got ESPP shares with 15% discount in January 2022 for which company has done perquisite tax deduction as applicable. I have sold the shares in Feb.
Now I want to list these shares in capital gain/loss section. When I go for adding foreign listed shares, it asks for buying/selling prices in Rupees. But I got and sold the shares in dollar and then transferred them into India. How do I list buying/selling prices in INR. Also what charges should I include as expenses e.g. can I include commission by bank for dollar → INR conversion. Also can I include 15$ commission by foreign broker for transferring selling amount.
Quicko didn’t ask me for foreign asset Schedule FA? Do I need to fill it
Thanks,
Does we need to apply Rule 115 here i.e. consider preceding month tt buying rate.
I have a query regarding long-term capital gains tax on selling RSUs that are US stocks. Which of the following applies?
(Selling price in USDxForex on the day of selling - Buying price in USDxForex on the day of buying)x20%
(Selling price in USD - Buying price in USD)xTTBR conversion datex20%
(Selling price in USDxForex on the day of selling - Buying price in USDxForex on the day of buying)x10%
(Selling price in USD - Buying price in USD)xTTBR conversion datex10%
(Selling price in USD - Buying price in USDxCII in the year of selling/CII in the year of buying)xTTBR conversion datex20%
(Selling price in USDxForex on the day of selling - Buying price in USDxForex on the day of buyingxCII in the year of selling/CII in the year of buying)x20%
As per Rule 115 of Income tax act, in order to calculate capital gains on selling RSUs following forex rate is to be applied:
Sales consideration* TTBR of the last day of the previous month in which trade is executed.
Purchase consideration* TTBR of the last day of the previous month in which security is purchased.
Capital gains from RSUs are chargeable to tax at 20% in case of Long term holding (more than 24 months) and at slab rate in case of short-term holding of securities.
Capital gain is calculated as Sales consideration - Indexed purchased cost (i.e. Purchase cost in INR* CII of current financial year divided by CII of year of purchase)
I am actually confused now. I wanted to refer to the decision given by The Delhi Bench of the Income-tax Appellate Tribunal. Reading this gives me the impression that Purchase cost in INR = Purchase consideration* TTBR of the last day of the previous month in which trade is executed (and not when security is purchased).
For conversion of Cost of acquisition TTBR of the last day of the previous month is from the date of acquisition only. For converting Sales consideration, capital gains and transfer expenditure TTBR of the last day of the previous month from the date of transfer of asset.
You can claim the benefit under section 54F if the property is sold and purchased in India and satisfies the other conditions as per the Income Tax Act.
As per the title the Capital gains on sale of Foreign tax should be reported. But the gains are still in $ amount and has not been converted to INR value yet.
How this should be reported and in what exchange rate ?
The taxpayer needs to report income from investments in the US market in the Income Tax Return in India.
The rate of exchange for the calculation of capital gains in rupees shall be the telegraphic transfer buying rate of such currency on the last day of the month immediately preceding the month in which the taxpayer transfers the capital asset.
Thank you, appreciate your response! One clarification, if I may ask is on the “unlisted” clause on the foreign shares. Isn’t every foreign share by nature be unlisted because it will not be listed in an Indian stock market and will not incur STT? In what condition can a foreign share be considered listed?