Taxability of Long-term Capital Gains for NRI

[TNSV DESIKAN]

AN NRI who has sold shares in India (through ICICI Direct.com) and paid STT has claimed complete

exemption for LTCG for the Asst. year 2010-11. According to him the ITO says that such exemption

is available only for resident assessees. Is the view of the ITO correct ?  --  RAJU (Student)

AI Summary

Long-term capital gains exemption on listed equity with STT applies to NRIs when the sale is on a recognised exchange.
Long-term capital gains from sale of equity shares or units of equity oriented funds on a recognised stock exchange that are chargeable to securities transaction tax are exempt under the statutory exemption; the exemption does not limit availability to residents and therefore applies to non-resident Indians who satisfy the transactional conditions. Special non-resident computation provisions do not nullify this exemption and a non-resident may elect the special or general computation regime.