Foreign Assets Capital gains

Dear Sir,

Hope you are doing well !!

Is it a short term capital gain or long term capital gain?

There is no need to report unrealised gain.

Please elaborate your query?

For how much period you held the shares?

You need to show the details of foreign assets held in schedule FA.

This is what different points of schedule FA signifies:

Table A1 – Foreign depository accounts
Table A2 - Foreign custodian accounts
Table A3 - Foreign equity and debt interest
Table A4 - Foreign cash value insurance contract or annuity contract
Table B - Financial interest in any entity outside India
Table C - Any immovable property outside India
Table D - Any other capital assets outside India.
Table E – Any other account located outside India in which you are a
signing authority (which is not reported in tables A1 to D)
Table F – Trust created outside India in which you are a trustee, a
beneficiary or settlor
Table G – Any other income derived from any foreign source (which is not
reported in tables A1 to F)

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Thank you.

Hi,

You need to show the details of foreign shares under A3. No, you dont need to report any unrealized gain but you need to report closing value of investment in A3.

Yes, its a short term capital gain.

You need to report everything in A3. You can show the shares which you have sold in a separate line item and unsold shares in a different line item.

Apart from it, you will have to report short term capital gain in the schedule CG also.

Dear Sir,

Reporting the Foreign Investment: 

You have to report the Investment in US shares (Foreign Investment) in the Schedule FA- Section A3 asking for details relating to "Foreign Equity and Debt Interest held (including any beneficial interest) in any entity at any time during the relevant accounting period".

Reporting of Capital Gain:

You have to report the Capital Gain from sale of US Shares (Foreign Investment) in Schedule CG- Section A5 asking for details relating to  assets sold include shares of a company other than quoted shares.

*"Section A5 is a residual section in the schedule capital gain. For the resident Capital Gain from investment in Foreign Securities are not covered in Section A1 to Section A4, which leads to reporting in the residual section i.e A5.

Thanks and Regards 

Divya Chugh 

- Sale proceeds from sale of shares should be shown under schedule Capital gain and value of investments as on 31.03.XXXX in schedule FA at point no. A3. No need to show value of unrealized gains.

Hello,

You will have to report the shares held by you during the year in Schedule FA- Section A3. Both shares sold and remaining unsold at the end of the year would be reported.

I hope this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Further, the Short Term Captial Gain would be declared under Schedule CG.

Yes, its a short term capital gain.

You need to report the same in Schedule FA- Section A3.

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