Non resident indian - taxation on short term capital gain on shares/ equities

RAJU (ACCOUNTANT) (58 Points)

25 July 2018  

Dear All 

There is an issue with the Tax filing  with an NRI  . Please see the details for  AY 2018-19

Short term capital gain on shares of indian companies purchased from Bombay stock exchange -  Rs 25000

(These purchases are made from the NRE/ NRO   Ruppee a/c  maintained in India )

TDS deducted on the above @ 15%  

Interest  from NRE  Account    -  Rs 5000

 Interest from  NRO Account  - Rs 3500  -  (TDS already  Deducted )

So total Income is 33500

Queries:

1 Can he file the return and claim refund of the TDS   -  as his   taxable income is below 250000 for  AY 18-19

2 Chapter 6A deduction for LIC premium is applicable for an  NRI who as only    STCG ?

Read in some articles that NRI cannot   set off the exemption limit of 250000    if he has only  income under capital gain on shares 

Aslo mentioned in the same article , 80 c and other decuctions are not available for the NRI if he has only capital gain income from shares ( no ther income)

Last query , where will this STCG will be shown in ITR 2   CG  Sheet . If it is shown under  nos 3  or  4  , then the ITR 2 IS automatically calculating the Income Tax  on the full STCG 

Your valuable advice is highly appreciated 

Thanks