General

Taxation on stocks traded in foreign exchange / Tax implications on short- and long-term capital gains in ICICI Direct Global Invest Account? Will there be double taxation on gains by US and Indian authorities?

For individuals residing in India and investing in Foreign Securities taxation on capital gains will be as per Income Tax Act.

The provisions of the US Tax laws and those of the Double Taxation Avoidance Agreement (DTAA) will determine  how your income derived from global investments is taxed.

As per the DTAA:

• Capital gains are taxable as per the domestic law;
• Dividend is taxable @ 25%; and
• Interest is taxable @15%

Disclaimer:

The above views are shared basis of our understanding of current laws and regulations.These rules and regulations are subject to change from time to time and these may have bearing on the views shared above.

It is recommended for the client to consult his/her tax advisors before acting on our views shared above.