Hi team, its been 10 days, awaiting response to the below A simple question, and I would really appreciate an answer in layman terms. I am planning to travel to the US in June. I currently have 5 lakhs in my bank account. Since the market is down, I am considering investing that amount in stocks. Let’s say I buy shares worth 5 lakhs now. Then in July, when I need the money, I sell them: If the value becomes 5.5 lakhs, will I be taxed on the full 5.5 or only on the 50k profit? I assume it’s short-term capital gains tax at 15%? If instead the value drops to 4.5 and I sell at a loss, will I still be taxed? Could you please clarify this? It would really help me plan better. Thanks in advance!

Ans: Indian residents have long-term capital gains from US stocks when the holding period is more than 24 months (or 2 years)
Long-term capital gains are taxed at 12.5% (post 2024 budget, earlier it was 20%).

You can look at diversifying your portfolio since US stock prices are at an all time high and Indian markets have been consolidating for the last 15 months, so good time to invest some monies in India from a 5 year point of view.

Please note that these suggestions are based on your stated goals and the information you provided. It is always a good idea to consult with a financial advisor in person to better understand your risk tolerance, time horizon, and specific financial goals.

Do let me know your views on this on my website or on my LinkedIn profile, attaching the link :
https://www.slwealthsolutions.com/

Ans: you need to clarify on whether the gain is short term or long term, its only allowed in long term capital gain and you need to open a capital gain account and place the money in the Capital Gains Account Scheme.