India Income Tax — Foreign Assets
Capital gains on foreign stocks sold abroad are not taxable in India, provided the gains are not remitted to India. This is your optimal window to exit holdings at low Indian tax cost.
Foreign dividend income not credited to an Indian account is also exempt during RNOR.
All capital gains on overseas assets must be reported. India taxes them after allowing foreign tax credit (Form 67) under the applicable Double Taxation Avoidance Agreement (DTAA).
| Income Type | RNOR | ROR |
|---|---|---|
| Foreign stock gains (not remitted) | ✓ Exempt | ✗ Taxable |
| Foreign stock gains (remitted to India) | ✗ Taxable | ✗ Taxable |
| Foreign dividends (not in Indian account) | ✓ Exempt | ✗ Taxable |
| Foreign dividends (credited in India) | ✗ Taxable | ✗ Taxable |
| DTAA foreign tax credit (Form 67) | N/A | ✓ Available |
| Schedule FA disclosure required | Most cases no | ✗ Mandatory |