Tax Implications for UAE-Based NRI Trading Unlisted Indian Shares

If you're an NRI living in Dubai and regularly trade shares, the Indian government has rules about how this income is taxed.

Since you trade in shares as part of your business, they are considered 'stock-in-trade', not investments.

This means some rules about how gifts or undervalued purchases are taxed don't apply.

If you sold shares at prices lower than market value, the tax on this depends on whether the shares are considered stock-in-trade.

Fortunately, under the India-UAE tax agreement, profits from your trading activity are unlikely to be taxed in India.