Capital Gain Tax Computation - u/s 50AA can apply in Foreign Securities (US)

[PRIYAM KHAMBHATA]

Respected Sir

My client is Citizen of US but Ordinary Resident of India for the FY 2025-26, he has sold certain following foreign securities during the FY 2025-26,

ISHARES CORE TOTAL BOND ETF - IUSB

ISHARES RUSSELL 2000 GROWTH ETF - IWO

ISHARES RUSSELL 2000 VALUE ETF - IWN

VANGUARD SHORT TERM BOND - BSV

VANGUARD TOTAL BOND MARKET - BND

ISHARES RUSSELL 2000 GROWTH ETF - IWO

My query is that can the provision of section 50AA - Special Provision for computation of capital gain, affect on sold of above Foreign Securities. Please guide me.

Thanks

AI Summary

Capital gains computation for foreign securities under section 50AA was queried for a US citizen ordinarily resident in India. Applicability of special capital gains computation under section 50AA to the sale of foreign securities was queried in the case of a US citizen ordinarily resident in India. The securities sold included foreign exchange-traded funds and bond funds such as iShares Core Total Bond ETF, iShares Russell 2000 Growth ETF, iShares Russell 2000 Value ETF, Vanguard Short Term Bond, and Vanguard Total Bond Market. The issue raised was whether these foreign securities fall within the scope of the special computation provision for capital gains.