Concessional tax of 10% on cap gains for NRIs is debatable


Are you a non-resident and have sold listed shares of an Indian company in an off market deal? In that case, Long term capital gains on sale of such shares could be taxable at the rate of 20%. This is as per the recent pronouncement by the Authority for Advance Ruling (‘AAR’) in the case of Cairn UK Holding Ltd where the AAR concluded that non-resident taxpayers are not entitled to claim the concessional rate of 10% for taxation of long term capital gains on sale of shares. Though the ruling of AAR is binding only on the applicant and on the Tax Authority in relation to the transaction it is sought, the ruling does have a persuasive value for others.
http://economictimes.indiatimes.com/personal-finance/tax-savers/concessional-tax-of-10-on-capital-gains-to-an-nri-is-debatable/articleshow/9884772.cms

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