Booked P&L: Loss in Indian Stock Market | Gain in U.S Stock Market - Do I have to pay tax?

Hello,

I want to know whether I have to pay any short-term capital gain tax or not. Below is my scenario.

This is only my sold stocks ‘Booked P&L’ since April 2020

=== My Indian Stocks P&L: ====

Net realized P&L = minus -9.82k (Including tax and brokerage)

=== My US Stocks P&L: ====

Amount transferred from bank to brokerage account = $2200 (Rupees 170,778)
Exchange rate:- 1 USD = 77.xx Rupees + Rs 1000 charged by HDFC Bank

Current value
US Portfolio = $2423
Cash from trading = $39.37 (Current exchange rate is only $74 and the bank will only give $73. There will also be $10 for the bank transfer charge)
Dividends (after-tax detected by the U.S Gov) = $2.59

How the short-term capital gain tax is calculated in this scenario?

Also, up to how many dollars can I gain in the U.S stock market till being tax-free?

@Quicko can you.

Hey @Mani_Kan_Dan ,

Capital Gain can be calculated on the sale of foreign stocks in the following manner:

Period of Holding - Time duration you have held your shares for
Sell Value - Amount you sell your security for
Buy Value - Amount you buy your security for
Transfer Expenses - Expenses incurred on sale of foreign stocks
Capital Gain = Sell Value - Buy Value - Transfer Expenses

Learn more about income tax on sale of foreign shares in this article.

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But what if I have made a profit in selling the stock but I’m actually in a loss in USD/Rupee conversion value?

Are brokerage fees, bank transfer charges, and trading GST/tax considered as a loss and be adjusted in the profit?

Hey,

Yes. brokerage fees, bank transfer charges, and GST charges can be claimed as expenses and adjusted against the profit.

If you have made profits by selling stocks but are actually in a loss due to the conversion rate, you must report the loss in the ITR. However, you must apply the TT rates as per Section 115 of the Income Tax Act to convert the foreign currency into INR.