Non-resident capital gains on Indian shares use foreign-currency conversion, mandatory computation rules, and no indexation where applicable. Capital gains arising to a non-resident from the transfer of shares or debentures in an Indian company are computed by converting the cost of acquisition, transfer-related expenditure and sale consideration into the same foreign currency originally used to acquire the investment, and then reconverting the gain into Indian currency. The method is mandatory where applicable, covers subsequent reinvestments and later sales, and does not allow indexation. It uses telegraphic transfer buying and selling rates for the prescribed conversions and excludes specified equity-oriented gains and certain instruments from its scope.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Non-resident capital gains on Indian shares use foreign-currency conversion, mandatory computation rules, and no indexation where applicable.
Capital gains arising to a non-resident from the transfer of shares or debentures in an Indian company are computed by converting the cost of acquisition, transfer-related expenditure and sale consideration into the same foreign currency originally used to acquire the investment, and then reconverting the gain into Indian currency. The method is mandatory where applicable, covers subsequent reinvestments and later sales, and does not allow indexation. It uses telegraphic transfer buying and selling rates for the prescribed conversions and excludes specified equity-oriented gains and certain instruments from its scope.
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