Ask Experts Questions for FREE Help !
Ask
    nishantarora's Avatar
    nishantarora Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 8, 2007, 06:34 AM
    Tax deducted in US for Shares sold
    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's Avatar
    The Texas Tax Expert Posts: 310, Reputation: 7
    Full Member
    		  
    #2

    Apr 8, 2007, 07:24 AM
    If you are a resident of India and not the US then you should not be taxed on the gain.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Apr 17, 2007, 10:53 AM
    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's Avatar
    The Texas Tax Expert Posts: 310, Reputation: 7
    Full Member
    		  
    #4

    Apr 17, 2007, 02:37 PM
    Non-residents would be taxed on capital gains only if they live in the US.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Apr 24, 2007, 09:23 AM
    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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Tax % on Sold Lot held over 30 years [ 1 Answers ]

Bought a vacant lot in 1972, sold it last year. I have long term carryover loss, but my ? Is at what tax rate should I use to calculate the basis for the lot. My tax bracket is 15%, but I understand that, for any assets held for a long period it should be bracketed at 8% or thereabout. Maybe I...

Tax question - sold house in UK [ 3 Answers ]

Hi folks Can anyone help me with the following question? I have just moved to the US from the UK, where I have sold my house in preparation for buying one here. I have transferred just over $75K in equity from the house sale to my account in the US. I'm pretty sure I don't have to pay any tax on...

Tax on inheritance sold abroad [ 3 Answers ]

My cousin living in Massachusets inherited abroad a condo 100 K value. If sold there, would it be taxed somehow by Federal or State Gov?

Do I pay tax on inherited property sold? [ 7 Answers ]

My brothers and I (4 of us) each inherited equal portions of my mother's house when she died. We sold the house shortly after the estate was settled and each of us received ~ 18,000 (there was no mortgage). Now, I am aware that any gain is taxed as long term no matter how long we owned it, since it...

View more questions Search