If you are an non resident and earn any income by way of sale of shares in Indian companies then you are come under the tax bracket under the head capital gain.
In case an assessee i.e. a non resident, earn any income by way of transfer of shares or debentures in an Indian company, shall be computed by converting
1. The cost of acquisition of the assets
2. The expenditure incurred wholly and exclusively in connection with such transfer
3. Sale consideration received or accruing as a result of transfer of capital asset
into the same foreign currency as was initially utilized in the purchase of such shares or debentures. The capital gain so computed in the foreign currency then thereafter converted into Indian currency.
The above said manner of computation of capital gain shall apply to capital gain arising from every reinvestment.
The key advantage of this computation is that the government is giving benefits to non residents with regards to loss that may arise due foreign exchange.
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