r2i forum

I am in the shipping industry. Since the past 7-8 years, I hold the NRI status. My annual overseas income ranges from . 15-20 lakh for which I never have filed an IT return in India as I don?t need to do it. Now, I plan to invest in Indian equity market, so I would like to understand how the tax rules will apply on the income that I earn from the investment in the stock market. Will I be eligible for paying taxes only if this Indian income crosses the minimum non-taxable amount (i.e. . 1.6 lakh per annum)?

HARPREET SINGH

Long-term capital gains on sale of shares through a stock exchange will be exempt from tax whereas short-term capital gains from such transactions are taxed at the rate of 15.45%. Unlike a resident, a non-resident cannot claim benefit of basic exemption limit on such short- term capital gains. This means that if a non-resident earns short-term capital gain on sale of such equity shares of . 10,000, he will have to pay income tax of . 1,545 on such gains even if he does not have any other taxable income.

VAIBHAV SANKLA
Executive Director Adroit

Thanks to Economic Times