Hi,
If one makes investment in Foreign Shares under LRS and earns Dividend, the dividend is taxable in India (DTAA can be availed).
- Is there any timelimit within which the realised dividend should be brought back to India?
- Can the dividend be reinvested in Foreign share without bringing back to India?
I found following FAQ in RBI which says it has to be brought back if uninvested within 180 days. Is it correct understanding or does it have different context.
Q 4. Under LRS are resident individuals required to repatriate the income earned on investments abroad, over and above the principal amount?
Ans. The investor who has remitted funds under LRS can retain and reinvest the income earned from his investments made under the Scheme. However, the received/realised/unspent/unused foreign exchange, unless reinvested, shall be repatriated and surrendered to an authorised person within a period of 180 days from the date of such receipt/ realisation/ purchase/ acquisition or date of return to India, as the case may be.
Further, any additional repatriation requirement with respect to investments made under Overseas Investments Rules and Regulations 2022 shall also be adhered to.
Thanks
Sri