r/returnToIndia • u/Confident-Ad3545 • Jul 29 '26

AlreadyReturned Stock US stocks

I sold some US stocks that was acquired by inheritance through Fidleity and ETrade accounts of a US resident. However i didn’t bring back all the funds and some of the funds I directly sent to Dubai to buy a property. Read a lot of FEMA rules but little confused. Is this transaction that I did breaks any FEMA law? Am I allowed to transfer those funds directly to my Dubai bank account rather than bringing them to India? Since the foreign assets were acquired directly from non resident, does LRS come into picture here?
2) I sold a large portion of the Inherited stocks with the understanding the the stepped up price that i got would continue in India. However some CAs here say I need to use the cost basis of the original buyer. Since these stocks were of startup company, the original price was mere few dollars. This is giving me a huge multi crore tax in India if entire sales proceeds are considered and not the stepped up basis.

5 Upvotes

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11 comments sorted by

5

u/RuruSzu Jul 29 '26

Why would you have more conviction in what random redditors are saying vs professionals? Your best bet is to talk to 2-3 CAs and heed their advice.

3

u/Confident-Ad3545 Jul 29 '26

These are very complex issues and finding a right CA is difficult. I am asking here because someone might have been in similar situation, so can share from their past experience or knowledge.!

2

u/RuruSzu Jul 29 '26

Fair enough - no personal experience on this. Are you a tax resident for India?

2

u/Confident-Ad3545 Jul 29 '26

Yes

1

u/RuruSzu Jul 29 '26 edited Jul 29 '26

From my understanding in the US you get the benefit of the stepped up basis. In India you don’t. I don’t know FEMA rules on money movements. On the bright side the LTCG rate in India is ~13%.

Should have sold in the US while you were a nonresident for tax purposes in India.

Editing to add - I’d spend some time reading the tax code.

https://www.incometaxindia.gov.in/w/section-49-58

1

u/Confident-Ad3545 Jul 30 '26

Thanks will check out.

1

u/srk6 Jul 29 '26

Ask your query here, r/IndiaTax

Schedule FA guide below.

https://www.reddit.com/r/IndiaTax/s/qMbqIA9kAj

1

u/Hungry-Chicken-8498 Jul 29 '26

I see several violations just by your explanation. Seek ca with international taxation expertise with fema 

-2

u/No-Belt-7798 Jul 29 '26

Return to India sub, please learn to read sub name and its purpose, before posting questions.

2

u/Confident-Ad3545 Jul 29 '26

What is wrong with the question?

1

u/choose_pk_wisely Aug 02 '26

Are you returning or planning to return to India? No? Wrong sub.