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| *Ostroff, Fair and Company>>>India Taxes |
I make an investment to an offshore company. How about tax issues for the income earned by that? |
I make an investment to an offshore company. How about tax issues for the income earned by that? There can be two types of income for you as a result of investment in offshore company. . Dividend . Capital gain If you are resident Indian, both these are taxable , since dividend from only Domestic company are tax free. On short term capital gains you will have to pay normal rate of tax because the sale of these shares shall not take place through Stock Exchange, However, the offshore company means a foreign company which is also listed in Indian Stock Exchange, Long term capital gain is zero, Short Term at the rate of 10% and Dividend shall be taX free Source(s): I have just startted my blog on Income Tax and first topic taken for dicussion is Non Resident's Tax liability. See if your query in future is answered there visit http://q4tax.blogspot.com Income is taxed on residence and or source of income basis. If you are resident of india then your income will be taxed as any other income. However if u are paying tax in the country where such offshore company is based and if india has a bilateral Double taxation avoidance treaty with that country then you may get avail benefit under that treaty. Even in absence of such a treaty you can avail proportionate deduction if u have paid any tax in the such other country. |
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