India taxes on dividends, capital gains in traditional IRA account in US

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sri800
Posts: 13
Joined: Sun Apr 13, 2014 1:28 am

India taxes on dividends, capital gains in traditional IRA account in US

Post by sri800 »

I'm planning to keep traditional IRA (pre-tax money invested in select stocks) open after we R2I. Any gains, dividends, interest are not taxed in the US until a distribution happens. When the distribution happens US will tax on the distribution. However after I become ROR, India taxes me on global income. That means India taxes dividends (what rate?) and gains (20% unlisted market) in the year dividends are paid out/capital gains occur. If this is true, I'll end up paying taxes twice on the gains.

Is anyone in my scenario? How did IRA account your taxation in India if you chose to hold it till you retire?
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