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NRIs and share sales: Is LTCG avoidable?

Mint Bangalore

|

September 30, 2025

I am an NRI who started investing in listed Indian shares in 2022 via my NRE account. I want to sell some shares and reinvest in others. Is there any capital gains exemption, similar to that for residential property?

- Harshal Bhuta

NRIs and share sales: Is LTCG avoidable?

Equity shares of listed companies held for over 12 months are treated as long-term capital assets, with gains taxed as long-term capital gains (LTCG) at 12.5% plus applicable cess and surcharge subject to relief under the relevant Double Taxation Avoidance Agreement (DTAA).

Under the Income-tax Act, 1961, Chapter XII-A (Sections 1I5C to 115I), Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) may claim exemption if sale proceeds are reinvested, subject to conditions:

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