So after all the back and forth on the International spends on investments. what was finally decided on the taxation & TCS for international investments, spends, Investments via MFs etc.
I am just looking to know what is the taxation if I want to invest in SP500 via Indian MF route.
From July 1, 2023, TCS @20% will be collected on foreign remittances made using international credit cards exceeding ₹7,00,000. You can read more on TCS on International Credit Card Payments
Tax on foreign securities is levied at slab rates in case of STCG if the securities are held for less than 2 years and @20% with indexation in case of LTCG if the securities are held for more than 2 years.
I would like to know how the gains from T-Bills issued by RBI are treated in India. Say, in a year I happen to make Rs.10,000/- from the T-Bills. How is the tax calculated on this Rs.10,000/- gain.
It is taxed as per the income slab or as a STCG or is it subjected to any other taxation?
The income from T-Bills issued by RBI is taxed as capital gains. Depending on the holding period, if held for a period of 36 months or less, the gains are considered STCG or if held for more than 36 months, the gains are considered LTCG.
Your answer is in contradiction to what is written at the beginning of this thread. As far as I know, we cannot hold T-Bills for more than an year because I think we have only 3, 6 and 12 month T-Bills. Can you please clarify?
Also the thread tells that the T-Bill income is treated as per the income tax slab rates. But you tell it is treated as capital gains. May I know which is the right one?
If I have invested say 10 Lacs in an equity MF during 2018(lump-sum). Say after 5 years in 2023 the value is now 20 Lacs. I,e a gain of 100%. What will be the long term capital gain tax?
Amount invested : 10 Lacs
Holding period : 5 years
Current value of units : 20 Lacs
Sale Amount : 10 Lacs
I understand that since sale amount and cost of acquisition is same , the LTCG tax will be nil, or will the LTCG tax be applicable on the 10 Lacs, since that is the gain.
Please confirm what will be the LTCG tax in this scenario?.
The cost of acquisition is the purchase value for the mutual funds. In this case, as per the information shared by you, you seem to have purchased the mutual funds for 10 lakhs. But the current value is 20 lakhs. However, the sale value is just 10 lakhs. Meaning the cost of acquisition should be in proportion to the units sold.
For the amount of gain or loss, it will be the difference between the sales value and the cost of acquisition. The acquisition cost per unit will be proportionate to the sales value per unit.
I have a question about F&O losses carry forward. I have f&o loss of about 1 lac and STCG of 2 lacs last year. Do I need to necessarily offset my f&o loss against the STCG? Can I pay tax on capital gains of 2 Lacs and just carry my f&o loss to the financial year?
I ask this since I have profits of 1.5L this year and would rather offset the 1L here.
Case 1 - offset against STCG then tax of the 2 years = (2L-1L) x 15% + 1.5L x 30% = 60k
Case2 - Carry and offset against f&o gains then tax of the 2 years = 2L x 15% + 50k x 30% = 45k
As per law, F&O loss is a non-speculative loss. Brought forward non-speculative business losses can be set off against only business income and can be carried forward for 8 years.
If you have capital gains this year, you cannot use it to set off the brought forward non-speculative business losses.
