Tax on Capital Gains earned by NRI

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.