https://www.taxtmi.com/acts?id=6901 Shares issued under the GDR mechanism are subject to withholding tax on dividends, remitted net to the Overseas Depositary Bank with potential foreign tax credit for holders; GDR trading outside India among non-residents is exempt from Indian capital gains tax. Transfers of underlying shares in India to non-residents are taxable, with long term or short term classification determined by holding period post redemption. Redeemed shares paid for in foreign exchange retain concessional dividend and long term capital gains treatment unless subsequently sold on Indian exchanges for rupee consideration, which removes concessional treatment. Tax deduction at source applies to capital gains on transfer. en-us Sat, 19 Jan 2008 22:45:54 +0530 Thu, 05 Mar 2009 16:49:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/acts?id=6901 Shares issued under the GDR mechanism are subject to withholding tax on dividends, remitted net to the Overseas Depositary Bank with potential foreign tax credit for holders; GDR trading outside India among non-residents is exempt from Indian capital gains tax. Transfers of underlying shares in India to non-residents are taxable, with long term or short term classification determined by holding period post redemption. Redeemed shares paid for in foreign exchange retain concessional dividend and long term capital gains treatment unless subsequently sold on Indian exchanges for rupee consideration, which removes concessional treatment. Tax deduction at source applies to capital gains on transfer. Act-Rules Direct Taxes Sat, 19 Jan 2008 22:45:54 +0530 https://www.taxtmi.com/acts?id=6901