What are the tax obligations applicable to NRIs?
Income on investments (capital gains) forming part of sales proceeds are subject to Capital Gains tax. The rate of tax depends upon the period of holding. Currently the tax rate applicable for short term capital gains and long-term capital gains is 10% and nil respectively (excluding surcharge & education cess). In the event of sale of shares, capital gains tax as applicable has to be deducted on the sale proceeds prior to the credit of the same to your account. The sale made will be adjusted on First In First Out basis for the purpose of calculating the capital gains tax applicable.
Income on investments (capital gains) forming part of sales proceeds is subject to Capital Gains tax. Long-Term capital gain (arising out of sale of shares/debentures held for more than 12 months from the date of its acquisition) is not applicable to tax. Short-Term capital gain (arising out of sale of shares/debentures held for a period of less than 12 months from the date of its acquisition) will be levied tax at the rate of 10%.
Income on investments (capital gains) forming part of sales proceeds is subject to Capital Gains tax. The rate of tax depends upon the period of holding. Currently the tax rate applicable for short-term capital gains and long-term capital gains is 33% and 11% respectively. These tax rates are inclusive of 2% surcharge. In the event of sale of shares, capital gains tax as applicable has to be deducted on the sale proceeds prior to the credit of the same to your account. The sale made will be adjusted on First In First Out basis for the purpose of calculating the capital gains tax applicable. Reserve Bank of India – Regulations Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India. The ceiling for overa
