STCG from selling of equity share for NRI taxable under 111A or 115AD(ii) for AY 2021-22

- Section 111A is also applicable to NRI. Section 115AD is related to FII

For detailed discussion you may opt for phone consultation. 

For being taxable under 115AD you need to be a foreign institutional investor and I am assuming you have not taken registration as one. Therefore you would be taxed u/s 111A at 15%.

I think it is an incorrect interpretation and you should appeal before CIT(A) against the same if you have time left for appeal as 111A is available to both resident as well as non-resident. I need to check your return and then I can further comment.

If the amount of tax is huge it is advisable to go for an appeal.

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

Solution:-

Short-term capital gains (STCG) arising from the sale of equity shares on recognized stock exchanges are taxable in India. As per the Income Tax Act, 1961, NRIs are eligible to pay tax under section 111A at the rate of 15% on STCG arising from the sale of equity shares on recognized stock exchanges in India.

It is essential to understand the grounds on which the IT department issued notice to you.You can file an appeal with the Commissioner (Appeals) within 30 days from the date of receiving the notice. It is advisable to consult with a CA before filling appeal.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

In case of delay in filing the appeal, you can make an application to the CIT(A) for condonation of delay along with the reasons for the delay and the grievance number that you received earlier. The CIT(A) may consider your application and may condone the delay, if satisfied with the reasons provided.

Hi, 

Section 111A is equivalently applicable to resident and non-resident both. Section 115AD is applicable for foreign institutional investors.

What IT department has been contending is strange and not correct. You could appeal within 30 days. But since it has been 5 months time, you can file condonation of delay explaining the genuine reason for delay. Also I just wanted to understand is it intimation issued u/s 143(1) or notice issued u/s 143(2) or 148A. Because we can also make an application for rectification u/s 154 in 4 years time. 

We can help you with appeal or rectification application. Kindly reach out for detailed consultation. 

You can still file appeal but the due date is 30 days hence you need to also prepare a condonation request for the same.

Hello,

Sec. 111A is available to NRI also. 

An appeal can be filed with CIT(A) with the request for condonation of delay. Rectification option is also available depending upon the notice/intimation received.

I hope this answer satisfies your requirements. For a detailed resolution of your query, you can take a phone consultation.

Regards,

CA Hunny Badlani

Badlani & Associates

It might be intimation u/s 143(1). You can file rectification for the same.