10 July 2009
The worldwide income of a resident in India is taxable in India under Income tax Act 1961. Thus by making a transaction in USA stock market had some body made a profit in USA, he would have got taxed in India as per IT Act provisions under the head Income from capital gains. Similarly any losses, would definitely be allowable to him in India as per the provisions of section 70. However this would be subject to scrutiny from department and the claimant has to prove the genuinness of the transactions. However I have not touched upon the benefit available to a resident of India of DTAA between India and USA. If you have an actual query, just let me know in details, i would be happy to answer the same in the light of DTAA and IT Act.
CAclubindia
