What is the definition of Long-term Capital Asset (LTCA) and Short-term Capital Asset (STCA) w.r.t foreign listed securities? What are the tax rates if any capital gain (Long term or Short term) is accrued on sale of such Capital Assets?

Modified on Thu, 26 Jan 2023 at 05:20 PM

The time period for which a particular capital asset is held by its owner decides whether that asset is a short-term capital asset or a long-term capital asset. Shares of a company listed on foreign stock exchanges (unlisted securities for Income Tax purposes) shall be considered as LTCA if the same is held for more than 24 months in case of stocks and more than 36 months in case of ETFs. 

Any shares held for a shorter duration than the period mentioned above shall be considered as STCA. The tax rate with respect to LTCG and STCG applicable to Indian residents has been provided below:

Capital Gains Tax Rate as of March 2021

Short Term Capital Gains: Income tax slab rates (plus applicable cess and surcharge) 

Long Term Capital Gains: 20% (plus applicable cess and surcharge)

Disclaimer: This article is for informational purposes only. None of the contents of this article should be treated as advice.

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