Hi
I am a chartered accountant from India and a resident in India. I held some shares in a company listed on Nasdaq , when i sold the shares the broker deducted some tax from the sale proceeds before remitting it to me in India.
I wish to know the Taxation treaty between India and US as I need to file Income Tax Return in India.
Whether I need to deposit the tax again on the short capital gain earned or I can claim some tax already deducted..

Thanks in advance.

Rgds
Nishant

The Texas Tax Expert

If you are a resident of India and not the US then you should not be taxed on the gain.

AtlantaTaxExpert

I disagree. Capital gains can be taxed on non-resident aliens. Now, after the personal exemption is factored in, there may be NO taxes due, but a Form 1040NR with a Schedule D DOES need to be filed. The tax withholding is being done to ensure that happens.

The Texas Tax Expert

Non-residents would be taxed on capital gains only if they live in the US.

AtlantaTaxExpert

On reflection, I withdraw my earlier contention that capital gains are subject to taxes. I yield to TTE's greater expertise in such matters.

However, the broker was probably NOT aware of your status as a non-resident alien, so they withheld 30% of the proceeds. You will have to file a Form 1040NR to get the withheld taxes back.