Archive · 11 Aug 2025
Share Sale Taxation for Non-Resident Indians in India
When you sell shares of an Indian company, the tax depends on how long you've held them and where you live.
If you've held the shares for more than two years, it's considered a long-term gain and taxed at 12.5%.
Since you live in Singapore, India will tax your gains.
Your original investment is treated differently from the later one.
Money from the second investment can be sent to your Singapore account.
However, the money from the initial investment will go to your Indian account, with the ability to send up to $1 million per year to your Singapore account.
Tax implications on selling shares in an Indian company depend on the seller's residency.
Capital gains are taxed based on the holding period; shares held over 24 months are long-term.
Long-term capital gains from selling unlisted shares are taxed at 12.5% plus surcharges.
India has primary tax rights on capital gains under the India-Singapore DTAA.
Repatriation of sale proceeds depends on the initial investment status, either repatriable or non-repatriable.
- Who
- A non-resident Indian selling shares of an Indian company.
- What
- Tax implications on the sale of shares in an Indian company by a non-resident.
- When
- At the time of selling shares held for more than 24 months.
- Where
- Regarding investments in India and tax implications.
- Why
- To understand the tax liabilities and repatriation rules.
Repatriation Constraints
Investment Freedom
Investment Type
Repatriation Constraints
Non-repatriable investment may have restrictions on funds transfer.
Investment Freedom
Repatriable investments allow unrestricted remittance.
- Tax Rate for LTCG
- 12.5% + surcharge and cess
- Holding Period for LTCG
- More than 24 months
- Taxing Authority
- India (primary right)
- Repatriable Investment
- Subsequent investment is repatriable
- Non-Repatriable Investment
- Initial investment
- Maximum Repatriation
- $1 million per fiscal year
