Dear all
Can anyone help me understand if one is liable to pay tax if the proceed from sell transaction is kept in the dollar $ account and not remitted/ realized in the Indian account (not converted to INR).
Eg : After selling shares of Google say one make a profit of $100 and he use the same money invest back in Tesla / or keep it as is . Will the gain be taxable at that instance of profit booking or it is only taxable when the money is remittted back to INR Indian account?
Selling Google shares for a $100 profit triggers tax liability in India, irrespective of whether:
- You keep the money in a US dollar account.
- You reinvest the money into Tesla or other shares.
- You remit the money to India.
The profit is taxed at the time of sale (profit booking) under capital gains tax rules.
If you paid any taxes on this $100 gain in the US, you can claim tax credit in India under the DTAA (Double Taxation Avoidance Agreement) between India and the US.
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