Thanks for the reply. @Surbhi_Pal
So a resident Indian, won’t need to pay any tax for a LTCG of 3.5 L considering the basic exemption limit right?
and up to 2.5 L in the case of STCG? Considering there is no other salary income.
Hey @krishobh,
Yes, your understanding is correct.
Hello,
I am an NRI employed in a GCC country since 2015. I have established my Dmat account with Zerodha, which is not designated as an NRI account, and I have made investments in Equity shares. Would there be any complications regarding investing in the Indian stock market as an NRI from a Non-NRI Dmat account during the process of filing ITR if I am liable to pay taxes on STCG/LTCG.
Hello @suhaz,
It won’t have any impact that you’re an NRI and trading with a resident account for tax purposes. However, there might be some restrictions for NRIs trading in Indian markets, so its advisable to trade via NRI account to be compliant in all regards.
Hope this helps!
Hello @suhaz,
Once you become an NRI one is obliged to convert all resident accounts to nri accounts. Continuing to operate a resident account as an NRI is in violation of the law (FEMA regulations) and the penalties can be quite stiff. This applies both to your Zerodha demat account and other financial accounts you have in India (e.g., bank savings or current accounts or FDs). I just thought I’d mention this in case you were not aware.
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Dear Sir/Madam,
At present I am a RESIDENT and may move to another country during this FY 2023-2024, but before 182 days as RESIDENT. I have investment in equity, MF and FnO trading. How will be the taxation for the LTCG, STCG and FnO profit made before I becoming NRI.
Please note that I will stay more than 182 days outside of India.
Hey @michuanu2002,
The residential status is determined for the entire financial year. Hence, if you stay out of India for more than 182 days, your residential status will be NRI for the relevant FY.
Moreover, with regards to taxation, your investments would be taxed similar to residents.
I’ll add your query to the relevant thread that may help you further.
I am an NRI and have not filed my ITR since FY 2020-2021 from which I started investing in EQUITY as NRO and Mutual Funds (NRI). I have received Dividends and TDS has already collected for it.
During FY 2023-2024, I have redeemed some of Mutual Funds and capital gains have been deducted as TDS. Also I have booked some of stocks in Loss and some in profit ( total gain is approximately 15000/-)
I have no other income from INDIA, but only my earnings as NRI.
Please advise whether I need to file for missing years. If yes, can QUICKO assist me in this case?
Thanking in advance
Hey @mkbashir,
If your total income for the previous FY does not exceed the basic exemption limit, which is ₹2.5L and TDS was deducted, then you can file an updated return (ITR-U), carry forward those TDS credits and claim them in the current FY.
Moreover, you will have to file the ITR for FY 2023-24 as you had realised capital gains in this year.
Quicko does help with ITR filing for the current and previous FY with their MEET tax advisory plan. You can book a MEET using the below link.
Hope this helps!
@Surbhi_Pal Thanks for your explanation about immaterial of benefits under VI-A for NRIs.
What’s the meaning of special rates on LTCG & STCG and Bank FD Interest income? for NRIs.
@Surbhi_Pal Could you tell the name of incomes which are not applicable under basic exemption for NRIs?
Hey @vinothanvik,
Most incomes are taxed at the normal slab rates. Special rate just means incomes that are not taxed as per the slab rate and the ITD has specified fixed rates for such incomes. For example, capital gains from equity shares are taxed at a fixed 10% (in case of long term) and 15% (in case of short term). Unlike the normal slab rates, these rates do not vary based on the income level.
@Surbhi_Pal Being an NRI, If the total income in India (inclusive of Capital gains from Equity & MF Redeem) is within ₹2.5 lakh as per the existing tax regime or ₹3 lakh as per the new tax regime won’t be tax liable correct? or Capital gains are taxed at 10 % or 15% by default for NRIs?
Hi @vinothanvik,
The basic exemption will not be available on capital gains from equity shares and mutual funds. The short-term gains will be taxed at a flat 15%. However, in case of long-term gains, you do get a ₹1L exemption. Hence, the gains exceeding ₹1L will be taxed at 10%.