Key Highlights
- I would like to understand the tax implications upon sale.
- —Name withheld on request Given that you have been residing in Hong Kong for the last 10 years, it is presumed that you qualify as a non-resident under the provisions of the Income Tax Act, 1961.
- An ETF qualifies as a “security” and, accordingly, constitutes a capital asset under Indian tax law.
- Any profit arising from the transfer of such a capital asset is chargeable to tax under the head “capital gains”.
- The characterization of such capital gains as short-term or long-term depends on the period of holding of the asset.
