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Gajendra Arvind

Category : Taxabili..,

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May 1, 2019 2:33 am

In one of the below responses it was mentioned for Unlisted and Foreign Shares under LTCG 'Gains will be treated as long-term if shares are held for more than 24 months. Tax will be levied @ 20% with indexation benefit and @10% without indexation benefit.' Does indexation benefit apply for shares he...

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Amlan Dutta

I have corrected it , as far as i understand for unlisted foreign shares, taxation is at 20 % with indexation ....i don't think that the concessional rate of 10 % ( without indexation option ) is available for unlisted foreign shares.....you may like to take a second opinion....

May 1, 2019

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Sunil Sahoo

Category : Taxabili..,

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April 30, 2019 4:14 pm

Can you please let me know how are employee stock options i.e ESOP's taxed ...My friend works in Indian IT company who has vested with him employee stock options to buy company stocks at 100 Rs for a certain time period . At present the stock is trading at premium i.e say 150 Rs and he is wanting to...

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Amlan Dutta

Simply having access to ESOP stocks doesn't attract tax, But the right to exercise buying and selling of stocks attract taxes

In emplo...

April 30, 2019

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Amlan Dutta

Simply having access to ESOP stocks doesn't attract tax, But the right to exercise buying and selling of stocks attract taxes

In emplo...

April 30, 2019

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hanif

Category : Taxabili..,

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April 30, 2019 3:29 pm

Sir, i have a query , my colleague did have an insurance policy taken in the year 2009 (january), and it is matured in january 2019. he got a maturity amount of
rs 3,30,756 and the message says that on account of Maturity payout has been credited to your bank account as per the NEFT facility chosen...

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Amlan Dutta

Please don't repeat your questions......As per section 10(10D) in case of a life insurance policy issued after 1.4.2003 but on or before 31.3.2012, if the premium payable in any year is less than 20% of the actual sum assured, then the policy proceeds would be exempt.Assuming that the annual premium was less than 20 % of the sum assured ,it is tax exempt .
For more clarity, Section 10(10D) has to be looked into for taxability of life insurance policy.As per Section 10(10D) of the Income Tax Act, 1961 the amount of sum assured plus any bonus (i.e. the policy proceeds) paid on maturity or surrender of policy or on death of the insured are completely tax free for the receiver subject to certain conditions.

1.) As per section 10(10D) in case of a life insurance policy issued after 1.4.2003 but on or before 31.3.2012 if the premium payable in any year exceeds 20% of the actual sum assured, then the policy proceeds would be taxable in the hands of the insured. .

2.) For policies issued on or after 1.4.2012, the above mentioned limit of 20% has been changed to 10%.

3.)In case the insured suffers from severe disability or disease as specified by the Income Tax Act and rules and his/her policy was issued on or after 1.4.2013, then for them the limit of 10% will be increased to 15%. For this purpose, disability has to be one of those specified in section 80U (like autism, mental retardation) and disease has to be one of those specified in section 80DDB rread with Rule 11DD of income tax rules such as blindness.

In case the premium payable in any year exceeds the prescribed percentage i.e. 10%, 15% or 20% of actual sum assured, as described in the preceding paragraphs, then the whole proceeds from the policy would get taxed in the year of receipt. However, in case of death of the insured, where his nominees receive the policy proceeds the same shall be tax free in the hands of the nominee(s) even if premium paid in any year crossed the prescribed percentage of sum assured

As per section 194DA of the Income Tax Act, 1961, any sum received by an insured Indian resident from an insurer under a life insurance policy shall be subject to TDS @ 2% if the said sum is not exempted under section 10(10D). This means that policy proceeds exempted under section 10(10D) will be given to the insured without TDS (Tax Deduction at Source). Further, even if these proceeds are taxable as per section 10(10D) but do not exceed Rs 100,000, then also no TDS is to be deducted by the ins ..

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April 30, 2019

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Amlan Dutta

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April 30, 2019

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Gajendra Arvind

Category : Taxabili..,

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April 29, 2019 10:59 pm

I am an Indian Resident, salaried employee, holding shares of company (that I am currently working in) listed in US Markets. At the time of selling the shares, what is the taxation rate that is applicable on the capital gains of such listed shares held outside India? Is the duration of the STCG and ...

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Amlan Dutta

You are referring to taxability of employee stock options for foreign stocks . Sale of shares of a foreign company by an Indian Individual who is resident in India during the particular year, amounts to "Transfer" of "Capital Asset" and is taxable as per the provisions of Section 45 of the Income Ta...

April 30, 2019

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Gajendra Arvind

Hi Amlan, in the above response you had mentioned for Unlisted and Foreign Shares under LTCG 'Gains will be treated as long-term if shares are held for more than 24 months. Tax will be levied @ 20% with indexation benefit and @10% without indexation benefit.' Does indexation benefit apply for shares...

April 30, 2019

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Amlan Dutta

April 30, 2019

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Gajendra Arvind

Thank you very much for the detailed response.

April 30, 2019

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