Will the amount remitted outside India for investment in US stocks become taxable at 5% ?
@Quicko can you.
Under the Liberalized Remittance Scheme (LRS), all resident individuals are allowed to freely remit up to USD 2,50,000 per financial year, subject to applicable conditions. In addition to the LRS, individuals can also invest under the Overseas Direct Investment (ODI) route, both of which are regulated by RBI. Income from the sale of foreign shares is treated as a Capital Gains Income as per the Income Tax Act. Hope this helps
From October 1, 5 % tax collected at source (TCS) will be applicable on all remittances above ₹7 lakh under RBI’s Liberalized Remittance Scheme (LRS). The Union Budget 2020 introduced a tax collected at source (TCS) on forex transactions.