created by Rajesh Dhruva


As the name suggests capital gains are profits arising upon sale of capital assets such as shares, securities, immovable properties etc.
NRIs are offered a unique benefit of paying tax on gains computed in foreign exchange earnings i.e.[ profits after considering the devaluation of rupee] as regards profits from shares and securities held for more than 1 year. For other  assets held for more than 3 years at par with residents, NRIs are also granted the benefit of " cost indexation"; exemption as regards investment in capital bonds  and exemption re: reinvestment in house properties or listed securities etc. The subject is defined as under: