Hi Greeting, I am NRI and about 1 month back I purchased shared of Rs 35 Lacks from Bombay Stock Exchange through my NRO account, now in short time value of my shared has increased to about 55 Lacks. Now I soled the share and want to transfer the Rs 55 Lacks to my overseas bank from my NRO account . During this processes required tax has been paid though NRO Account. Now my query is: 1- Does I have to pay any additional TAX while international transfer Rs 55 Lacks from my selling of shares, which I was holding for about one month . 2- Which documents are required for oversea fund transfer from my NRO account, for the amount I received from shares selling ( Rs 55L). 3- Does holding shares for only short time and transferring it's fund from NRO account is OK or required any additional Tax.
The income generated from transfer of shares is a short term capital gain. Such income is chargeable to tax @15.6%. Tax would be approx.Rs.3.12 lacs
1. No additional tax. You are only liable to pay tax@15.6% on STCG.
2. Form 15CA,15CB,A2, copy of challan of tax payment and contract note
3. No additional tax. It is ok.
For detailed discussion you may opt for phone consultation. I can assist you in filing of Form 15CA and 15CB.
Hi,
It will be short term capital gains chargeable to tax @15%. Form 15CA-CB would be required.
Regards
Prerna Peshori
Thanks for feedback. Does I have to show source of fund for my original amount of Rs 35Lac which was in my NRO account.
You are only required to pay capital gain tax on the sale of shares. The rate of tax on the STCG of Rs. 20 Lacs will be 15%+Cess. The effective rate will be 15.6%.
There is no restriction on transferring funds from the NRO account after payment of the required tax. This process of transferring funds from an NRO to an overseas account is called repatriation. Since you will already be paying Capital gain tax, no additional tax must be paid at the time of transfer of funds to your overseas account.
You will require Form 15CA & CB while making the fund transfer. Other documents will also be needed while making the bank's transfer. A practising CA will issue form 15CB based on Form 15CA.
In your Income Tax Return, you do not have to show the source of funds in your NRO account. You will only be reporting the capital gain.
You don't need to show source of income in your return but in case the return is picked up for scrutiny you should be able to explain the source of funds else it counts as unexplained investment/money
In ITR it is not required but at the time of scrutiny you have to produce it.
Hi
You need to pay short term capital gain tax in India. The remaining amount can be remitted back.
The bank would require form 15CA /CB for the remittance.
Source of fund won't be required at the time of remittance or ITR filing.
