manumani

Hi,
I am planning to move to Australia in March 2012, and had some questions regarding my investments in India. I have investments in the stock market, which I have no intention of liquidating right now, as well as an apartment (mortgage free) that I have no intention of selling (for now). How will I be taxed on these when I finally decide to sell them off ? Will the capital gains on my stock investments be calculated based on the price on the day I migrated to Australia, or from the date I made the original investments ? What about the capital gains from sale of property ?

I am assuming that any rental income I receive will be taxed as per my tax bracket in Australia.

Regards
Manumani

Kiwipaul

Any capital gains tax will be based on the value of the asset on the day you become resident in Oz.

If you hold on to the asset for a futher 12 months only half the gain will be liable for tax which will be added to your income for the year and taxed accorddingly.

If you leave oz without selling any of theses asset you will still be liable for tax on these assets based on the capital gain you made on them whilst in Oz.

This is a simplified version their are a couple of more complex answers.

Any income generated anywhere in the world is liable for tax in Oz once you become tax resident.

manumani

For stocks it will be easy to show the valuation as of a particular date. How do I show the valuation of my property as of a particular date ?

Bermudashorts

Get it valued?

papilon

You don't. Why say anything. This is one of those situations that arises from moving to another country. Pay what's due in India if you wish but i can't see these assests have anything to do with the Australian Tax office.

Amazulu

only if you tell them

manumani

Obviously, when I sell them, I'll transfer the money back to Australia. And I am not sure I can hide a couple of hundred thousand dollars in my backyard

manumani

Ok. So I guess I get it valued before I leave India, and then whenever I decide to sell it, pay tax on the difference (less 50% if held more than 12 months)

There is no long term capital gains tax on equity investments in India, and I am pretty sure I can remit the proceeds from the sale of property without paying any tax. So best case scenario, I don't pay any tax on my gains in India.