Few years back I was working in USA. I had invested in US Equity Market like Facebook, Amazon etc. there and presently my shares are still invested there. Now I want to sell those shares. What will be the tax implications for me in India as I have come back two years back?

Ans: Capital Gains are chargeable to tax only when the shares are sold. The foreign exchange fluctuations do not give rise to capital gains income. At the time of transfer of shares, capital gain will be calculated in foreign currency and converted into INR as per the rate prevailing on last date of immediately previous month in which shares are transferred.

Ans: Hello,
Dividends will be taxed at flat 25%
Duration for LTCG is 24months and more and the LTCG tax rate is 20%

Ans: At the time of transfer, Indian Income tax provisions will be applicable. If period for holding is more than 24 months, it will be long term capital asset.

The short-term capital gains are taxed at the slab rate whereas long-term gains are taxed at the rate of 20% along with the indexation benefit.

Ans: I'll address your inquiries about TDS and capital gains tax for NRIs selling stocks and redeeming mutual funds:

Stocks (Held for More Than 1 Year):

Taxable: Yes, profits from selling stocks held for over a year are considered long-term capital gains (LTCG) and are taxable in India for NRIs.
TDS: The stock broker will deduct TDS at 10% of the LTCG amount.
Tax Rate: The actual tax liability on LTCG exceeding ?1 lakh (approx. $1,235) is 10% without indexation (inflation adjustment). This means you may be due a refund if your total tax liability is below 10%.
NRE Account: Holding the stocks in your NRE account doesn't affect the taxability.
Mutual Funds:

Tax Treatment: The tax treatment for mutual fund redemptions by NRIs depends on the type of fund:
Equity-Oriented Mutual Funds (Equity & Equity-Linked Savings Schemes):
Short-Term Capital Gains (STCG): Gains from redemptions within 1 year are taxed at 15% with TDS deducted at the same rate.
LTCG: Gains from redemptions after 1 year are taxed at 10% on gains exceeding ?1 lakh, with TDS deducted at 10%.
Debt-Oriented Mutual Funds: Gains are considered income from other sources and taxed at a flat rate of 30% with TDS deducted at the same rate.
Recommendations:

Calculate Your Tax Liability: To determine if you'll owe additional tax or are eligible for a refund, calculate your total LTCG and factor in the TDS deducted.
File an Income Tax Return: Even if your tax liability is less than the TDS deducted, consider filing an Indian income tax return to claim any potential refund.
Consult a Tax Advisor: For personalized advice specific to your situation and to explore potential tax-saving options, consult a qualified tax advisor specializing in NRI taxation.
Additional Notes:

You can claim exemptions under relevant sections of the Income Tax Act (e.g., Section 54EC for reinvestment in specific bonds) to reduce your tax liability.
TDS is a mechanism to collect tax upfront, but it doesn't represent your final tax obligation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in