I own mutual funds in India, and sold them for long term profit. These long term capital gains are tax free in India. Am I required to pay US capital gains taxes on it? I am a green card holder but Indian citizen living in the US
2007-02-18 16:59:32 · 3 answers · asked by timepass 1 in Business & Finance ➔ Taxes ➔ United States
As a US resident, you are taxable on this item. A tax treaty would be relevant only if you were claiming to be a Treaty resident of India rather than the US.
2007-02-18 17:20:04 · answer #1 · answered by TaxGuru 4 · 0⤊ 0⤋
Long Term Capital Gain Tax is NIL in INDIA till now arised from Equity based Mutual Funds. Please note that as per Income Tax Act, 1961 the Long term Capital Gains means if it is arised from sale after the period of 36 Months i.e. 3 Years but in case of Shares and Mutual Funds that period is 12 Months i.e. 1 year
2016-05-24 06:22:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Since you are a US resident, that's taxable in the US unless it's subject to a tax treaty. Very few treaties of that type exist.
2007-02-18 17:16:12 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋