Tax on sale of foreign shares

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  1. gmnew

    gmnew New Member


    I work in an IT company in India which is based in USA. In the US, it is a publicly traded company while in India it is a private limited company. I’ve been allotted ESOP (Employee Stock Option) of the parent company in US. These shares are listed in New York Stock Exchange and I exercised my allotment at a nominal price in August 2013. Now after 1 year 6 months of exercising my option I wish to sell my shares. Could you please help me on how I would be taxed? I consulted 3 different CA’s and all of them gave me contradicting statements. Based on their replies below are the questions I’ve.

    1. For foreign shares what is the holding period to make it long term – 12 months or 36 months.

    2. Does long term capital gain benefits apply to foreign shares. Or is it only for shares traded in Indian stock exchanges.

    3. What would be the percentage of tax for short term and long term with regard to foreign shares.

    Looking forward for your reply.

    Thank you for your help!
  2. Manoj Mehra

    Manoj Mehra Active Member

    Long Term Capital Gains benefit is only for shares sold in the Indian Stock Exchanges.
  3. gmnew

    gmnew New Member

    Thank you Manoj for taking time to reply. Much appreciated.
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