Mr Shahrukh khan is a Resident not ordinarily resident for financial year 2018-19. He sold some shares of Indian Company but received the amount in Germany. What will be the taxability for the capital gains?

As per Section 9 of Income tax act, 1961, any Income arising outside India directly or indirectly through or from:

  1. Any business connection in India,
  2. Any Property/ asset in India,
  3. Transfer of capital asset situated in India.

Will be treated as Income for all categories of taxpayer’s i.e. Resident, Non-resident, and Resident not ordinarily resident.

In the given case, the shares are of Indian company and also there is a transfer of capital asset i.e. shares of an Indian company situated in India.
Hence the capital gains income will be taxable in India for Mr Shahrukh khan.

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