As per Section 9 of Income tax act, 1961, any Income arising outside India directly or indirectly through or from:
- Any business connection in India,
- Any Property/ asset in India,
- 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.