Can someone please advise on use of LRS money to buy international equity and the tax implications for Indian residents ?
Tax Treatment of Foreign Equity
Foreign Equity is taxed in the same way as any other Asset.
Tax Treatment
LTCG - 20% with benefit of indexation
STCG - income tax slab rates
Set Off and Carry Forward Loss
LTCL - Can be set off against LTCG and carried forward for 8 years
STCL - Can be set off against STCG and LTCG and carried forward for 8 years
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Thanks - super clear ! I heard @nithin saying on a TV interview that Zerodha will be provding access to US markets. Any comment on expected timelines ?
Working on this, will take few more weeks.
related query. say the LRS remittance is used to create a company abroad. There is set up costs/compliance/maintenance fees so on. The remmiter is the director/shareholder/member of the company. can these costs be carried as a loss? When the company pays back dividend or any salary to the remitter in India this can be set off against it?
Cnnot be shown as loss, need to be reported as expense.
Also, it cannot be set off against dividend or salary.
These setup, compliance, or maintenance costs cannot be claimed as a loss by the remitter. They would be treated as expenses of the foreign company itself.
Also, such expenses cannot be set off against dividend or salary.