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?

If your Residential Status as per the Income Tax Act is ‘Resident’, your worldwide income is taxable in India. This would mean that Capital Gains earned on US stocks will be taxable in India.

Have you held the stocks for more than 24 months and the ETF's for 36 months.

If Yes, then LTCG will apply

If No, then STCG will apply

LTCG (Long Term Capital Gains)

If you hold US stocks for more than 24 months, your gains on sale will be considered Long Term Capital Gains and will be taxed at 20% + surcharge and fees.

STCG (Short Term Capital Gains)

If you hold the US stocks for less than 24 months, they will be considered Short Term Capital Gains and will be taxed according to your income slab rate + surcharge and fees.      

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