Capital gain tax from Stock

POSTED BY pj ON September 6, 2012 4:37 pm COMMENTS (4)

Hi,

I work in a US based company, registered in NASDAQ.
I have sold RSU stocks issued by company using charles schwab and wire transferred the money to india.

i am assuming that since these are not indian shares , i will not be excepted from capital gains tax .

All these stocks got vested to be before a year.  So i guess i will be subjected to long term capital gains tax.
If i invest this money in buying a house , will that be excempted from capital gains tax ?

4 replies on this article “Capital gain tax from Stock”

  1. pj says:

    thanks for confirming.

  2. Dear PJ, as the holding period of these stocks was more than year, the gains ‘ll be considered Long Term capital Gains. To save on Tax liability on this LTCG, you may invest in a house.

    Thanks

    Ashal

  3. pj says:

    from what i understand

    For Shares not listed in BSE , this is how capital gain tax is calculated

    1) Short term capital gain : no exception of any sort
    2) Long term capital gain :
    — exempted if invested in equity / equity based mutual funds
    — exempted if invested in purchase of first house

  4. pj says:

    as per the doc from the income tax department , looks like i will be excepted from tax , given that this is my first residential house purchase

    http://www.incometaxindia.gov.in/Archive/How_to_compute_capital_gains_2008-09.pdf

    If some expert can confirm the same , it would be great.

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