Sirji
I have a query that was forwarded by a friend of mine for a solution. (I have changed the figures to round off for easy calculation and better understanding)
My friend is working in a MNC, and was allotted 100 shares of that company (US based) under employees scheme (against payment) in August 2014. The shares were allotted at a rate of $ 85 per share while the market rate was $ 100. He sold the shares at $ 110 per share on 18.3.15. $ 50 was paid as brokerage to the broker (through whom the sale transactions was performed). The sale proceed (via a wire transfer) was deposited in the bank and bank deducted about Re 1.00 per dollar from the official exchange rate (say bank exchanged the proceed at Rs 60 per dollar while the official rate was Rs 61 per dollar)
Now the queries are
1. What is the purchase price.
2. What is the sale price
3. How to compute all this for taxation purpose.
4. Which ITR form to be filled in view of above (otherwise he is filling ITR 1 only)
5. Though this will be treated as STCG. But want to know if there is any LTCG or STCG type of treatment, like in Indian equity, for foreign shares sales also. If yes then what is the period (like 12 months for Indian equities) and rate of taxation (nil for LTCG for Indian equities).
Please reply above queries and anything more that you want to add.
Thanks