05 August 2016
Hello,
My query is that if a person (indian resident) holds shares of Google Inc, USA (transactions: sale/purchase will be in USD only).
So how to calculate capital gain on this.
According to my knowledge, treatment is as below,
eg: Purchase price = USD 200
sale price = USD 250
Cap gain = USD 50 × Exchange rate as on date on sale(Suppose Rs. 60 per USD) = Rs. 3000
If we receive Rs. 3243 in bank account, I think to consider the balance i.e. Rs. 243 as forex gain. (can be loss too)
Please confirm whether I am right, or any other treatment should be there.
05 August 2016
In my view this situation is not provided in the Income Tax Law. As per FEMA, a Resident cannot subscribe the shares of a foreign company except for ADR or GDR or some other foreign currency bonds as permitted.
CAclubindia
