Tax + Estate Planning

Nri Parent Indian Direct Equity Listed Unlisted Pms...

Complete 2026 guide for NRI / OCI senior parents holding or inheriting Indian Direct Equity — Listed equity (NSE + BSE + large cap + mid cap + small cap + sectoral +...

Updated 27 Jun 2026|30 min read
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NRI parent senior 60+ Indian Direct Equity + Listed + Unlisted + PMS + Preferential + Rights + Bonus + Demerger + IPO + FPO matrix with Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + Section 80CCG RGESS + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO 7y + 10y retention + FEMA compounding + senior 60+ parent estate India 2026.

Critical: Indian Direct Equity + Listed + Unlisted + PMS + Preferential + Rights + Bonus + Demerger + IPO + FPO held by NRI / OCI / US person — Section 45 transfer + Section 50CA FMV (unlisted shares) + Section 111A STCG 15% + Section 112 LTCG 20% + Section 112A LTCG 10% + STT + FEMA prior RBI approval for NRI acquisition + Form 8938 FATCA + PFIC Form 8621

Indian Direct Equity + Listed + Unlisted + PMS + Preferential + Rights + Bonus + Demerger + IPO + FPO held by NRI / OCI senior 60+ parent are classified as capital assets per Income Tax Act 1961 Section 2(14). Section 45 transfer + Section 48 computation + Section 50CA FMV (Fair Market Value method for unlisted shares per Section 50CA(1) read with Rule 11UAB + Rule 11UAC of Income Tax Rules 1962 — applicable to ALL unlisted shares including startup private company shares + closely-held shares + PMS concentrated unlisted position + preference shares) + Section 50C stamp duty valuation NOT applicable (only immovable property). Section 111A STCG 15% on listed equity (STT paid on recognised stock exchange NSE / BSE) + Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation Section 48(ii) CII 2001 base per Section 55(2)(iii) FMV for shares acquired before 01-04-2001) + Section 112A LTCG 10% on listed equity (holding > 12 months + sale consideration > INR 1 lakh aggregate per year + without indexation + 4% cess). STT Securities Transaction Tax 0.1% on equity delivery purchase + 0.025% on equity intraday + 0.1% on equity non-delivery + 0.2% on equity futures + 0.1% on equity options premium per Section 36(1)(x) deduction. Section 80CCG Rajiv Gandhi Equity Savings Scheme (RGESS) — closed for new subscribers but existing holdings continue per Section 80CCG(2)(a) + 3-year lock-in + Section 80CCG(2)(c) + INR 25,000 deduction (50% of investment in RGESS-listed equity shares / RGESS-listed equity MF, locked for 3 years). Section 197 lower-rate certificate + Form 13 + Section 195 NRI TDS at applicable rate + DTAA rate + Section 197A lower TDS + Form 15G + Form 15H senior 80+ NOT applicable to dividend / capital gains. FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA PIS (Portfolio Investment Scheme) route per Schedule 3 of FEMA 1999 + RBI PIS Master Direction 2024 + Form A2 + AD-1 + 7-year NRO retention debated (typically equity sale proceeds treated as current income repatriable immediately per RBI Circular 47/2015 + 12/2015) + 10-year US/UK/CA/AU retention for inheritance from person domiciled there + FEMA compounding penalty up to 3x per FEMA 1999 Section 13. DTAA Article 13 capital gains + Article 11 interest + Article 10 dividend (US-India DTAA Article 10 — typically 15% withholding on dividend from Indian company to US person; saving clause applies) + saving clause + MAV main purpose test + Form 8833 treaty disclosure + Section 6114 + 25% treaty penalty + Section 7701(b) treaty tie-breaker + Estate Tax Treaty + Gift Tax Treaty + Section 90(4) 8-year retention of TRC + Form 67 mandatory per CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules + Section 90(5) limitation of benefits + panchnama if AO suspects non-genuine treaty claim.

NRI Parent Direct Equity + Listed + Unlisted + PMS + Preferential + Rights + Bonus + Demerger + IPO + FPO Stack for Senior 60+ Parent Estate India 2026

Senior 60+ Parent Estate | NRI / OCI / US Person | India Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO | Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG

Full Section 45 transfer + Section 48 computation + Section 50CA FMV (unlisted shares per Rule 11UAB + Rule 11UAC) + Section 50C stamp duty valuation NOT applicable + Section 111A STCG 15% (STT paid on NSE / BSE) + Section 112 LTCG 20% on unlisted (24m+ + 4% cess + Indexation) + Section 112A LTCG 10% on listed (12m+ + > INR 1 lakh aggregate + without indexation + 4% cess) + STT 0.1% / 0.025% / 0.2% + Section 80CCG RGESS (closed) + FEMA USD 1M / year LRS + FEMA PIS + NRE / NRO demat + DTAA Article 13 + 11 + 10 dividend + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO 7y + 10y retention debated + FEMA compounding stack for senior 60+ parent estate NRI / OCI / US person Indian Direct Equity.

Section 45 transfer + Section 48 computation + Section 50CA FMV (Fair Market Value method for unlisted shares per Section 50CA(1) read with Rule 11UAB + Rule 11UAC of Income Tax Rules 1962 — applicable to ALL unlisted shares including startup private company shares + closely-held shares + PMS concentrated unlisted position + preference shares)

Section 50C stamp duty valuation NOT applicable (only immovable property)

Section 111A STCG 15% on listed equity (STT paid on recognised stock exchange NSE / BSE) per Section 36(1)(x) deduction

Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation Section 48(ii) CII 2001 base per Section 55(2)(iii) FMV for shares acquired before 01-04-2001)

Section 112A LTCG 10% on listed equity (holding > 12 months + sale consideration > INR 1 lakh aggregate per year + without indexation + 4% cess)

STT Securities Transaction Tax 0.1% on equity delivery purchase + 0.025% on equity intraday + 0.1% on equity non-delivery + 0.2% on equity futures + 0.1% on equity options premium per Section 36(1)(x) deduction

Section 80CCG Rajiv Gandhi Equity Savings Scheme (RGESS) — closed for new subscribers but existing holdings continue per Section 80CCG(2)(a) + 3-year lock-in + Section 80CCG(2)(c) + INR 25,000 deduction (50% of investment in RGESS-listed equity shares)

FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA PIS (Portfolio Investment Scheme) route per Schedule 3 of FEMA 1999 + RBI PIS Master Direction 2024 + Form A2 + AD-1 + 7-year NRO retention debated (typically equity sale proceeds repatriable immediately per RBI Circular 47/2015 + 12/2015)

NRE / NRO demat account + CDSL / NSDL Depository Participant (DP) — equity shares held in demat form only for NRI / OCI per FEMA 1999

PMS (Portfolio Management Service) — SEBI PMS Regulations 1993 + minimum INR 50 lakh investment + 2-3% fees + concentrated unlisted position (Section 50CA FMV applies)

Preferential allotment (Section 62(1)(a) Companies Act 2013) + Rights issue (Section 62(1)(a) + Section 62(1)(c) Companies Act 2013) + Bonus shares (Section 63 Companies Act 2013) + Demerger (Section 230-232 Companies Act 2013 NCLT scheme + Section 47(xiii) / Section 47(xiv) Income Tax Act 1961)

IPO + FPO + OFS offer for sale + buyback + ESOP (Employee Stock Option Plan — perquisite under Section 17 + Section 17(2)(vi) + Section 17(2)(vii))

Section 56(2)(vii) FULL EXEMPT for nominee receiving equity shares from specified relative (debated for shares) + Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inherited + Section 55(2)/(2A)/(2B)/(2)(iii) FMV 2001

Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13 + Section 197A lower TDS

Section 194 dividend TDS + Section 10(34) dividend exempt + Section 10(38) pre-2018 LTCG grandfathering exempt + Section 47(i)/(iii)/(xiii)/(xiv) non-transfer

Section 115BBA tax on dividend from domestic company to non-resident (debated — typically Article 10 DTAA rate applies)

DTAA Article 13 capital gains + Article 11 interest + Article 10 dividend (US-India DTAA Article 10 — typically 15% withholding on dividend from Indian company to US person; saving clause applies) + saving clause + MAV main purpose test

Black Money Act 2015 — 30% tax + 30% penalty Section 10/11 BMA + Form 3520 + Form 3520-A + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Form 5471 CFC for foreign equity company

Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO + 7y + 10y retention debated + FEMA compounding + senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026 matrix

MechanismSection + rate + TDSSenior 60+ parent estate treatmentFEMA + DTAA interactionBlack Money Act + Form 3520 angle
Listed Equity (NSE + BSE + large cap + mid cap + small cap + sectoral + thematic)Section 45 transfer + Section 48 computation + Section 111A STCG 15% on listed equity (STT paid on recognised stock exchange NSE / BSE) per Section 36(1)(x) deduction + Section 112A LTCG 10% on listed equity (holding > 12 months + sale consideration > INR 1 lakh aggregate per year + without indexation + 4% cess) + Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13 + Section 197A lower TDS; Section 50CA NOT applicable (only for unlisted shares); Section 80CCG RGESS (closed for new subscribers) per Section 80CCG(2)(a) + 3-year lock-in + Section 80CCG(2)(c) + INR 25,000 deductionSenior 60+ parent NRI / OCI receives listed equity via demat + nominee receives equity shares on death per Section 39 EPF Act analog + Indian Succession Act 1925 Section 63 + Will + codicil + executor; Section 56(2)(vii) FULL EXEMPT for nominee from specified relative (debated for shares); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inherited + Section 55(2)(iii) FMV 2001 for shares acquired before 01-04-2001FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA PIS (Portfolio Investment Scheme) route per Schedule 3 of FEMA 1999 + RBI PIS Master Direction 2024 + Form A2 + AD-1 + 7-year NRO retention debated (typically equity sale proceeds repatriable immediately per RBI Circular 47/2015 + 12/2015); FEMA compounding penalty up to 3x per FEMA 1999 Section 13; DTAA Article 13 capital gains + Article 10 dividend + saving clause; Section 90(4) 8-year TRC + Form 67Form 8938 FATCA required if foreign equity held by US person > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ); FBAR FinCEN 114 if foreign equity account aggregate > USD 10K at any point during calendar year; PFIC Form 8621 for foreign equity holding (typically foreign stock treated as PFIC for US tax — QEF election or mark-to-market per Section 1295 + Section 1296); Form 5471 CFC for foreign equity company > 50% US person ownership; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty
Unlisted Equity (startup + private company + closely-held + preference shares + convertible debentures + warrants)Section 45 transfer + Section 48 computation + Section 50CA FMV (Fair Market Value method for unlisted shares per Section 50CA(1) read with Rule 11UAB + Rule 11UAC of Income Tax Rules 1962 — applicable to ALL unlisted shares including startup private company shares + closely-held shares + PMS concentrated unlisted position + preference shares) + Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation Section 48(ii) CII 2001 base per Section 55(2)(iii) FMV for shares acquired before 01-04-2001); Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13Senior 60+ parent NRI / OCI receives unlisted equity via demat + nominee receives on death; Section 56(2)(vii) FULL EXEMPT for nominee from specified relative (debated for shares); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inherited + Section 55(2)(iii) FMV 2001FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA PIS (Portfolio Investment Scheme) route + FEMA prior RBI approval debated for unlisted equity acquisition (typically NOT required for purchase of unlisted shares from existing NRI seller — RBI Circular + LRS limit applies; required for fresh acquisition from Indian company per FDI policy / ECB / FPI rules); FEMA compounding penalty up to 3x; DTAA Article 13 capital gains + Article 10 dividend + saving clause; Section 90(4) 8-year TRC + Form 67Form 8938 FATCA required if foreign unlisted equity held by US person > USD 50K end-of-year; FBAR FinCEN 114 if foreign unlisted equity account aggregate > USD 10K; PFIC Form 8621 for foreign unlisted equity (typically foreign stock treated as PFIC for US tax — QEF election or mark-to-market); Form 5471 CFC for foreign unlisted equity company > 50% US person ownership; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty
PMS (Portfolio Management Service) — SEBI PMS Regulations 1993 + minimum INR 50 lakh investment + 2-3% feesSection 45 transfer + Section 48 computation + Section 50CA FMV (unlisted shares per Rule 11UAB + Rule 11UAC — for concentrated unlisted positions in PMS) + Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation Section 48(ii) CII 2001 base) OR Section 111A STCG 15% (for listed equity in PMS); Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13Senior 60+ parent NRI / OCI invests via PMS distributor + nominee receives on death; Section 56(2)(vii) FULL EXEMPT for nominee from specified relative (debated for shares); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inheritedFEMA USD 1M / year LRS + 7-year NRO retention debated; FEMA compounding penalty up to 3x; DTAA Article 13 capital gains + Article 10 dividend; Section 90(4) 8-year TRC + Form 67; SEBI PMS Regulations 1993 (minimum INR 50 lakh investment + 2-3% fees)Form 8938 FATCA required if foreign PMS equivalent held by US person > USD 50K end-of-year; FBAR FinCEN 114 if foreign PMS account aggregate > USD 10K; PFIC Form 8621 for foreign PMS (typically treated as PFIC for US tax); Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty
Preferential Allotment (Section 62(1)(a) Companies Act 2013) + Rights Issue (Section 62(1)(a) + Section 62(1)(c) Companies Act 2013) + Bonus Shares (Section 63 Companies Act 2013)Section 45 transfer on subsequent sale + Section 48 computation + Section 50CA FMV (unlisted shares per Rule 11UAB + Rule 11UAC); preferential allotment price per Section 56(2)(vii)(b) + Section 56(2)(viia) deemed gift debate for preferential allotment below FMV (debated — typically not applicable for NRI on preferential allotment); Section 56(2)(x) angel tax on unlisted shares issued at premium NOT applicable (only on issuance — recipient side); bonus shares — Section 47(iv) transfer NOT applicable (bonus shares not treated as transfer for capital gains); rights issue — Section 47(x) renunciation NOT applicableSenior 60+ parent NRI / OCI receives preferential / rights / bonus shares + nominee receives on death; Section 56(2)(vii) FULL EXEMPT for nominee from specified relative (debated for shares); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inherited; bonus shares cost = nil per Section 55(2)(iv)FEMA USD 1M / year LRS + FEMA prior RBI approval debated for preferential allotment to NRI (typically requires FEMA prior RBI approval per FDI policy / FPI rules); FEMA compounding penalty up to 3x; DTAA Article 13 capital gains + Article 10 dividend; Section 90(4) 8-year TRC + Form 67; Companies Act 2013 Section 62 + 63Form 8938 FATCA required if foreign preferential / rights / bonus shares held by US person > USD 50K end-of-year; FBAR FinCEN 114 if foreign account aggregate > USD 10K; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty
Demerger (Section 230-232 Companies Act 2013 NCLT scheme + Section 47(xiii) / Section 47(xiv) Income Tax Act 1961)Section 47(xiii) + Section 47(xiv) transfer NOT applicable — demerger capital asset conversion NOT treated as transfer for capital gains; Section 45 transfer on subsequent sale of resulting company shares; Section 50CA FMV (unlisted resulting company shares per Rule 11UAB + Rule 11UAC) + Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation) OR Section 111A / 112A (for listed); Section 195 NRI TDS at applicable rate + DTAA rateSenior 60+ parent NRI / OCI receives resulting company shares per Section 47(xiii) / Section 47(xiv) cost of acquisition = original cost per Section 49(2AA)/(2B)/(2C); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost inheritance per Income Tax Act 1961FEMA USD 1M / year LRS + FEMA prior RBI approval debated for demerger NRI participation (typically NOT required for passive NRI holding); FEMA compounding penalty up to 3x; DTAA Article 13 capital gains + Article 10 dividend; Section 90(4) 8-year TRC + Form 67; Companies Act 2013 Section 230-232 NCLT schemeForm 8938 FATCA required if foreign demerger shares held by US person > USD 50K end-of-year; FBAR FinCEN 114 if foreign demerger account aggregate > USD 10K; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty
IPO + FPO + OFS offer for sale + Buyback (SEBI Buyback Regulations 2018)Section 45 transfer on buyback per Section 46A (cost of acquisition determined per Rule 44BB); buyback taxable as dividend + capital gains per Section 115-O read with Section 115-OA (debated — typically buyback is dividend in shareholders hands per Finance Act 2013 amendment + Section 10(34) dividend exempt + 20% dividend distribution tax in company hands); Section 50CA FMV (unlisted shares per Rule 11UAB + Rule 11UAC); Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation) OR Section 111A / 112A (for listed); Section 195 NRI TDS + Section 197 lower-rate certificate + Form 13Senior 60+ parent NRI / OCI applies for IPO / FPO / OFS via ASBA (Applications Supported by Blocked Amount) — UPI / net banking; nominee receives on death; Section 56(2)(vii) FULL EXEMPT for nominee from specified relative (debated for shares); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost inheritanceFEMA USD 1M / year LRS + FEMA PIS route for IPO / FPO / OFS allocation; FEMA prior RBI approval debated for IPO / FPO (typically NOT required for NRI IPO / FPO — RBI PIS allocation); FEMA compounding penalty up to 3x; DTAA Article 13 capital gains + Article 10 dividend; Section 90(4) 8-year TRC + Form 67; SEBI ICDR Regulations 2018 (IPO / FPO / OFS allocation rules)Form 8938 FATCA required if foreign IPO / FPO / OFS / buyback shares held by US person > USD 50K end-of-year; FBAR FinCEN 114 if foreign account aggregate > USD 10K; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty
ESOP (Employee Stock Option Plan) — perquisite under Section 17 + Section 17(2)(vi) + Section 17(2)(vii)Section 17(2)(vi) ESOP perquisite — fair market value of ESOP on exercise date taxed as salary income perquisite; Section 17(2)(vii) ESOP RSU / RSU (Restricted Stock Units) — fair market value on vesting date taxed as salary income perquisite; Section 49(1)/(2) cost of acquisition for ESOP shares = FMV on exercise / vesting date per Section 55(2)(iii) read with Rule 8D; Section 45 transfer on subsequent sale; Section 111A STCG 15% / Section 112A LTCG 10% (listed) / Section 112 LTCG 20% (unlisted); Section 192 + Section 195 NRI TDSSenior 60+ parent NRI / OCI receives ESOP from Indian employer / US employer (if NRI works for Indian subsidiary); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost inheritance for ESOP transferred at death; Section 56(2)(vii) FULL EXEMPT for nominee from specified relative (debated)FEMA USD 1M / year LRS + FEMA prior RBI approval debated for ESOP (typically NOT required for ESOP from Indian employer to NRI employee per FEMA 1999 + RBI Master Direction 2024 — employment income; required if NRI employee wants to repatriate ESOP sale proceeds above LRS limit); FEMA compounding penalty up to 3x; DTAA Article 14 employment income (US-India DTAA Article 14 — personal services / employment income typically taxable in source country where services performed); Article 13 capital gains on subsequent sale; Section 90(4) 8-year TRC + Form 67Form 8938 FATCA required if foreign ESOP shares held by US person > USD 50K end-of-year; FBAR FinCEN 114 if foreign ESOP account aggregate > USD 10K; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty
Section 80CCG Rajiv Gandhi Equity Savings Scheme (RGESS) — closed for new subscribers but existing holdings continueSection 80CCG(2)(a) + 3-year lock-in + Section 80CCG(2)(c) + INR 25,000 deduction (50% of investment in RGESS-listed equity shares / RGESS-listed equity MF, locked for 3 years); Section 45 transfer on subsequent sale after 3-year lock-in; Section 111A STCG 15% / Section 112A LTCG 10% (listed) / Section 112 LTCG 20% (unlisted)Senior 60+ parent NRI / OCI holds RGESS shares + 3-year lock-in; nominee receives on death; Section 56(2)(vii) FULL EXEMPT for nominee from specified relative (debated); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost inheritanceFEMA USD 1M / year LRS + FEMA prior RBI approval debated for RGESS (typically NOT required — RBI PIS allocation); FEMA compounding penalty up to 3x; DTAA Article 13 capital gains + Article 10 dividend; Section 90(4) 8-year TRC + Form 67Form 8938 FATCA required if foreign RGESS-equivalent held by US person > USD 50K end-of-year; FBAR FinCEN 114 if foreign RGESS-equivalent account aggregate > USD 10K; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty
Section 10(34) dividend + Section 10(38) pre-2018 LTCG grandfathering + Section 47(i)/(iii)/(xiii)/(xiv) non-transfer + Section 115BBA tax on dividendSection 10(34) dividend exempt up to INR 10 lakh aggregate per year (post Finance Act 2020 amendment — debated, typically ALL dividend exempt); Section 10(38) pre-2018 LTCG grandfathering exempt (debated — typically pre-2018 LTCG exempt per Section 10(38) read with Finance Act 2018 amendment); Section 47(i) / (iii) / (xiii) / (xiv) transfers NOT treated as transfer for capital gains — personal transfers + gift + conversion + demerger; Section 115BBA tax on dividend from domestic company to non-resident @ 20% per Finance Act 2020 amendment (debated — typically Article 10 DTAA rate applies for US-India 15%)Senior 60+ parent NRI / OCI receives dividend + capital gains + Section 56(2)(vii) FULL EXEMPT for heir receiving equity shares from specified relative (debated for shares); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost inheritance; Section 56(2)(xi) deemed gift > INR 50,000 if received without considerationFEMA USD 1M / year LRS + FEMA dividend repatriable immediately per FEMA 1999 + RBI Master Direction 2024 (no 7-year retention for dividend); FEMA compounding penalty up to 3x; DTAA Article 10 dividend (US-India DTAA Article 10 — typically 15% withholding on dividend from Indian company to US person; saving clause applies); Section 90(4) 8-year TRC + Form 67Form 8938 FATCA required if foreign dividend / equity held by US person > USD 50K end-of-year; FBAR FinCEN 114 if foreign account aggregate > USD 10K; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty
Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Form 5471 CFCBlack Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015 — 30% tax + 30% penalty (Section 10/11 BMA) on undisclosed foreign income + foreign assets; Form 3520 + Form 3520-A mandatory for foreign trust distribution + foreign trust ownership; Section 6048 reporting; Section 671-679 grantor trust classification; PFIC Form 8621 for foreign equity holding (typically foreign stock treated as PFIC for US tax); Form 5471 CFC for foreign equity company > 50% US person ownership; Form 8938 FATCA required if foreign equity held abroad > USD 50K; FBAR FinCEN 114 if foreign equity account aggregate > USD 10KSenior 60+ parent estate inheriting foreign equity held by foreign trust (offshore equity trust in Cayman / Bermuda / Singapore) MUST file Form 3520 + Form 3520-A for foreign trust distribution; Form 8938 FATCA + FBAR FinCEN 114 + Form 5471 CFC + PFIC Form 8621 separately; penalty up to USD 10,000 for non-compliance per IRC Section 6677; Section 6662 20-40% accuracy penalty; Section 6663 75% fraud penaltyFEMA NRO + AD-1 still applies for repatriation; Black Money Act + Form 3520 reported via ITR + Schedule FA + Schedule FSI + Schedule TR + Schedule CG — NO DTAA relief per Section 90(4A) exclusion; CBDT Notification 4/2015 + 5/2015 + 6/2015 + 8/2015 reportingForm 3520 + Form 3520-A + Form 8938 FATCA + FBAR FinCEN 114 + Form 5471 CFC + Form 8621 PFIC — aggregate reporting required; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty
Grantor trust + charitable remainder + Section 10(20/21/23BB) registered valuer + 10(23C) charitable + 10(34) dividend + 10(38) pre-2018 LTCG + 10(23D) MF incomeSection 671-679 grantor trust — equity held by foreign grantor trust for US person: grantor reports 100% trust income on Form 1040; Section 642/664 charitable remainder — donor retains interest + charity remainder; Form 5227 split-interest + Form 1041-A charitable trust; Section 10(20/21/23BB) registered valuer exempt + 10(23C) charitable + 10(34) dividend exempt + 10(38) pre-2018 LTCG grandfathering exempt + 10(23D) MF income exemptSenior 60+ parent estate donor — Section 10(23C) charitable trust (Section 56(2)(vii) FULL EXEMPT for charity from specified relative per Section 56(2)(vii) proviso — debated for shares to charity); Section 642/664 charitable remainder trust with Form 5227 + Form 1041-A; Section 671-679 foreign grantor trust; Section 678 beneficiary treated as owner; Section 679 foreign grantor with US beneficiaryFEMA — charitable donation of equity shares by NRI subject to FEMA prior RBI approval per FEMA 1999 Section 4 + FEMA Master Direction; FEMA — foreign grantor trust creation requires prior RBI approval per FEMA 1999 Section 10(4)Form 1040 + Schedule D + Schedule B + Form 5227 split-interest + Form 1041 trust + Form 3520 + Form 3520-A + Form 8938 FATCA + FBAR FinCEN 114 + Form 5471 CFC + PFIC Form 8621 + Section 6662 20-40% + Section 6663 75% + Section 6677
FEMA NRO + 7y + 10y retention + repatriation + equity sale proceeds repatriationFEMA 1999 Section 6(3) + Schedule 1 + RBI Master Direction 2024 — NRI may hold equity shares + demat account in NRE / NRO demat / bank account; 7-year Indian retention before repatriable for inherited equity shares debated (typically equity sale proceeds treated as current income repatriable immediately per RBI Circular 47/2015 + 12/2015); 10-year US/UK/CA/AU retention for inheritance from person domiciled there; FEMA NRO repatriation within USD 1M / year LRS after retention; equity sale proceeds repatriation allowed immediately per FEMA 1999 + RBI Master Direction 2024 (no 7-year retention for equity sale)Senior 60+ parent estate heir inherits equity shares through inheritance — non-repatriable for 7 years debated (typically equity sale proceeds repatriable immediately per RBI Circular 47/2015); after 7y, repatriation permitted within USD 1M / year LRS; AD-1 + Form A2 + CA certificate Form 15CB mandatory for > USD 5000 net after tax; FEMA compounding penalty up to 3x per FEMA 1999 Section 13; equity sale proceeds repatriation allowed immediately (no 7-year retention)Section 195 + 194 + 195 r.w. 194 + 196D TDS credited against DTAA limit per Article 13 + 11 + 10 dividend; TRC + Form 67 mandatory per Section 90(4) 8-year retention + Section 90(5) panchnama; FEMA + DTAA both applicable; equity sale income repatriable immediately subject to Section 195 r.w. 194 NRI TDS + Section 90 DTAAAll repatriation reportable in Form 8938 FATCA + FBAR FinCEN 114; Form 5471 CFC for foreign equity company; PFIC Form 8621 for foreign equity; Black Money Act 30% + 30% penalty for undisclosed foreign income / assets

Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO 7y + 10y retention debated + FEMA compounding + senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026 overview matrix

Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO 7y + 10y retention debated + FEMA compounding + senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026 overview matrix
Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO 7y + 10y retention debated + FEMA compounding overview for senior 60+ parent estate

Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + FEMA NRO 7y + 10y retention debated + FEMA compounding stack for NRI parent senior 60+ parent estate

Step 1

Step 1

Identify equity class — listed (NSE + BSE + large cap + mid cap + small cap + sectoral + thematic) + unlisted (startup + private company + closely-held + preference shares + convertible debentures + warrants) + PMS + preferential + rights + bonus + demerger + IPO + FPO + OFS + buyback + ESOP for Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA + Black Money Act 2015 + Form 3520 + PFIC Form 8621 + Section 671-679 + Section 642/664 + FEMA NRO 7y + 10y retention debated

Step 2

Step 2

Establish KYC + PAN + Aadhaar (resident) OR OCI card + passport + FATCA CRS declaration + UBO declaration (NRI / OCI); Section 50CA FMV (unlisted shares per Rule 11UAB + Rule 11UAC Income Tax Rules 1962 — applicable to ALL unlisted shares including startup private company shares + closely-held shares + PMS concentrated unlisted position + preference shares); Section 50C stamp duty valuation NOT applicable (only immovable property)

Step 3

Step 3

Compute Section 111A STCG 15% on listed equity (STT paid on recognised stock exchange NSE / BSE) per Section 36(1)(x) deduction + Section 112A LTCG 10% on listed equity (holding > 12 months + sale consideration > INR 1 lakh aggregate per year + without indexation + 4% cess); Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation Section 48(ii) CII 2001 base per Section 55(2)(iii) FMV for shares acquired before 01-04-2001)

Step 4

Step 4

Apply STT Securities Transaction Tax 0.1% on equity delivery purchase + 0.025% on equity intraday + 0.1% on equity non-delivery + 0.2% on equity futures + 0.1% on equity options premium per Section 36(1)(x) deduction; Section 80CCG Rajiv Gandhi Equity Savings Scheme (RGESS) — closed for new subscribers but existing holdings continue per Section 80CCG(2)(a) + 3-year lock-in + Section 80CCG(2)(c) + INR 25,000 deduction (50% of investment in RGESS-listed equity shares)

Step 5

Step 5

Apply Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inherited for equity transferred at death; Section 55(2)(iii) FMV 2001 as cost of acquisition for shares acquired before 01-04-2001; FIFO method for multiple purchases of same scrip; Section 47(iv) bonus shares cost = nil per Section 55(2)(iv)

Step 6

Step 6

Apply Section 56(2)(vii) FULL EXEMPT for nominee receiving equity shares from specified relative (debated for shares); nominee claim per Section 39 EPF Act analog + Section 62(2)(c) Indian Succession Act analog for unlisted shares + demat transmission per SEBI Depositories Regulations; Section 56(2)(xi) deemed gift > INR 50,000 if equity received without consideration (recipient hands)

Step 7

Step 7

Apply Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13 + Section 197A lower TDS + Section 194 dividend TDS + Section 10(34) dividend exempt + Section 10(38) pre-2018 LTCG grandfathering exempt + Section 47(i)/(iii)/(xiii)/(xiv) non-transfer

Step 8

Step 8

Apply FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA PIS (Portfolio Investment Scheme) route per Schedule 3 of FEMA 1999 + RBI PIS Master Direction 2024 + Form A2 + AD-1 + NRE / NRO demat account (CDSL / NSDL) + 7-year NRO retention debated (typically equity sale proceeds treated as current income repatriable immediately per RBI Circular 47/2015 + 12/2015)

Step 9

Step 9

Apply DTAA Article 13 capital gains + Article 11 interest + Article 10 dividend (US-India DTAA Article 10 — typically 15% withholding on dividend from Indian company to US person; saving clause applies) + saving clause + MAV main purpose test + Form 8833 treaty disclosure + Section 6114 + 25% treaty penalty + Section 7701(b) treaty tie-breaker + Estate Tax Treaty + Gift Tax Treaty; Section 90(4) 8-year retention of TRC + Form 67 mandatory; CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules; Section 90(5) panchnama if AO suspects non-genuine treaty claim

Step 10

Step 10

Apply Black Money Act 2015 30% tax + 30% penalty Section 10/11 BMA for undisclosed foreign income / assets + Form 3520 + Form 3520-A for foreign trust distribution / ownership + Section 6048 reporting; Form 8938 FATCA required if foreign equity held by US person > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ); FBAR FinCEN 114 if foreign equity account aggregate > USD 10K at any point during calendar year; PFIC Form 8621 for foreign equity (typically foreign stock treated as PFIC for US tax — QEF election or mark-to-market per Section 1295 + Section 1296 + Section 1297); Form 5471 CFC for foreign equity company > 50% US person ownership

Step 11

Step 11

Apply Section 671-679 grantor trust classification (equity held by foreign grantor trust for US person: grantor reports 100% trust income on Form 1040) + Section 642/664 charitable remainder (donor retains interest + charity remainder with Form 5227 split-interest + Form 1041-A charitable trust) + Section 6662 20-40% accuracy penalty + Section 6663 75% fraud penalty + Section 6677 USD 10,000 foreign trust penalty; Section 10(20/21/23BB) registered valuer exempt + Section 10(23C) charitable + Section 10(34) dividend exempt + Section 10(38) pre-2018 LTCG grandfathering exempt + Section 10(23D) MF income exempt

Step 12

Step 12

File ITR + Schedule CG (Capital Gains) + Schedule FA (Foreign Assets) + Schedule FSI (Foreign Source Income) + Schedule TR (Tax Relief) + Form 26AS + Form 16A + Section 90(4) 8-year retention; update demat (CDSL / NSDL) + SEBI Depositories Regulations 2018 + Companies Act 2013 Section 62 + 63 + 230-232; FEMA NRO + 7y + 10y retention debated; AD-1 + Form A2 + CA certificate Form 15CB + FEMA ED RBI Master Direction 2024 + FEMA PIS Master Direction 2024 + SEBI (Portfolio Managers) Regulations 1993 + SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011 + SEBI (Buyback of Securities) Regulations 2018

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Section 50CA FMV + Section 56(2)(vii) heir exempt + Section 111A + 112 + 112A + Section 80CCG RGESS + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + FEMA NRO 7y + 10y retention debated + FEMA compounding + senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026 flow

Step 1

Step 1

Section 50CA FMV (Fair Market Value method for unlisted shares per Section 50CA(1) read with Rule 11UAB + Rule 11UAC of Income Tax Rules 1962) — applies to ALL unlisted shares including startup private company shares + closely-held shares + PMS concentrated unlisted position + preference shares; Section 50C stamp duty valuation NOT applicable (only immovable property)

Step 2

Step 2

Heir inheritance per Section 56(2)(vii) FULL EXEMPT — heir receiving equity shares from specified relative (spouse + brother + sister + lineal ascendant + lineal descendant + spouse of lineal ascendant + spouse of lineal descendant per Section 56(2)(vii) Explanation) FULL EXEMPT (debated for shares — typically not applicable per CBDT Circular 6/2016 narrow reading)

Step 3

Step 3

Cost of acquisition per Section 49(1)/(2)/(2AA)/(2B)/(2C) inherited + holding period inherited; Section 55(2)(iii) FMV 2001 as cost of acquisition for shares acquired before 01-04-2001; FIFO method for multiple purchases of same scrip per Section 45 + 48

Step 4

Step 4

Section 80CCG Rajiv Gandhi Equity Savings Scheme (RGESS) — closed for new subscribers but existing holdings continue per Section 80CCG(2)(a) + 3-year lock-in + Section 80CCG(2)(c) + INR 25,000 deduction (50% of investment in RGESS-listed equity shares / RGESS-listed equity MF, locked for 3 years)

Step 5

Step 5

Section 111A STCG 15% on listed equity (STT paid on recognised stock exchange NSE / BSE) + Section 112A LTCG 10% on listed equity (holding > 12 months + sale consideration > INR 1 lakh aggregate per year + without indexation + 4% cess); Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation Section 48(ii) CII 2001 base)

Step 6

Step 6

STT Securities Transaction Tax 0.1% on equity delivery purchase + 0.025% on equity intraday + 0.1% on equity non-delivery + 0.2% on equity futures + 0.1% on equity options premium per Section 36(1)(x) deduction; Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13 + Section 197A lower TDS

Step 7

Step 7

FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA PIS (Portfolio Investment Scheme) route per Schedule 3 of FEMA 1999 + RBI PIS Master Direction 2024 + Form A2 + AD-1 + NRE / NRO demat account + 7-year NRO retention debated (typically equity sale proceeds treated as current income repatriable immediately per RBI Circular 47/2015 + 12/2015); FEMA compounding penalty up to 3x per FEMA 1999 Section 13

Step 8

Step 8

DTAA Article 13 capital gains + Article 11 interest + Article 10 dividend (US-India DTAA Article 10 — typically 15% withholding on dividend from Indian company to US person; saving clause applies) + saving clause + MAV main purpose test + Form 8833 treaty disclosure + Section 6114 + 25% treaty penalty + Section 7701(b) treaty tie-breaker + Estate Tax Treaty + Gift Tax Treaty; Section 90(4) 8-year retention of TRC + Form 67 mandatory

Step 9

Step 9

Black Money Act 2015 — 30% tax + 30% penalty Section 10/11 BMA for undisclosed foreign income / assets + Form 3520 + Form 3520-A + Section 6048 reporting; Form 8938 FATCA required if foreign equity held by US person > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ); FBAR FinCEN 114 if foreign equity account aggregate > USD 10K at any point during calendar year; PFIC Form 8621 for foreign equity (typically foreign stock treated as PFIC for US tax — QEF election or mark-to-market)

Step 10

Step 10

Section 671-679 grantor trust classification (equity held by foreign grantor trust for US person: grantor reports 100% trust income on Form 1040) + Section 642/664 charitable remainder (donor retains interest + charity remainder with Form 5227 split-interest + Form 1041-A charitable trust) + Section 6662 20-40% accuracy penalty + Section 6663 75% fraud penalty + Section 6677 USD 10,000 foreign trust penalty; Section 10(20/21/23BB) registered valuer exempt + Section 10(23C) charitable + Section 10(34) dividend exempt + Section 10(38) pre-2018 LTCG grandfathering exempt + Section 10(23D) MF income exempt

Step 11

Step 11

Section 47(i) / (iii) / (xiii) / (xiv) non-transfer — personal transfers + gift + conversion + demerger NOT treated as transfer for capital gains; Section 115BBA tax on dividend from domestic company to non-resident @ 20% (debated — typically Article 10 DTAA rate applies for US-India 15%); Indian Succession Act 1925 + Will + codicil + executor + LoA + succession certificate + Hindu Succession Act 1956 Section 6 coparcener + Indian Trust Act 1882 Section 3+5+6 trust deed; SEBI (Portfolio Managers) Regulations 1993 + SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011 + SEBI (Buyback of Securities) Regulations 2018 + Companies Act 2013 Section 62 + 63 + 230-232

Step 12

Step 12

File ITR + Schedule CG + Schedule FA + Schedule FSI + Schedule TR + Form 26AS + Form 16A + Form 67 (DTAA) + Section 90(4) 8-year retention; update demat (CDSL / NSDL) + KYC compliance + FEMA NRO + 7y + 10y retention debated; AD-1 + Form A2 + CA certificate Form 15CB + FEMA ED RBI Master Direction 2024 + FEMA PIS Master Direction 2024 + 7.5% TCS Section 206C(1G) above INR 50 lakh + 20% TCS Section 206CCA

Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO 7y + 10y retention debated + FEMA compounding + senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026

Senior 60+ parent estate NRI / OCI parent Indian Direct Equity — listed + unlisted + PMS + preferential + rights + bonus + demerger + IPO + FPO — governed by the heaviest compliance stack in the personal-finance asset universe. Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA Article 13 + 11 + 10 dividend + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO 7y + 10y retention debated + FEMA compounding all converge on a single equity folio. Section 50CA FMV (Fair Market Value method for unlisted shares per Section 50CA(1) read with Rule 11UAB + Rule 11UAC of Income Tax Rules 1962 — applicable to ALL unlisted shares including startup private company shares + closely-held shares + PMS concentrated unlisted position + preference shares); Section 50C stamp duty valuation NOT applicable (only immovable property). Section 111A STCG 15% on listed equity (STT paid on recognised stock exchange NSE / BSE) per Section 36(1)(x) deduction; Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation Section 48(ii) CII 2001 base per Section 55(2)(iii) FMV for shares acquired before 01-04-2001); Section 112A LTCG 10% on listed equity (holding > 12 months + sale consideration > INR 1 lakh aggregate per year + without indexation + 4% cess). STT Securities Transaction Tax 0.1% on equity delivery purchase + 0.025% on equity intraday + 0.1% on equity non-delivery + 0.2% on equity futures + 0.1% on equity options premium per Section 36(1)(x) deduction. Section 80CCG Rajiv Gandhi Equity Savings Scheme (RGESS) — closed for new subscribers but existing holdings continue per Section 80CCG(2)(a) + 3-year lock-in + Section 80CCG(2)(c) + INR 25,000 deduction (50% of investment in RGESS-listed equity shares / RGESS-listed equity MF, locked for 3 years).

Senior 60+ parent NRI / OCI Indian Direct Equity inheritance + nominee transfer + Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inherited for equity transferred at death + Section 55(2)(iii) FMV 2001 as cost of acquisition for shares acquired before 01-04-2001 + FIFO method for multiple purchases of same scrip per Section 45 + 48 + demat (CDSL / NSDL Depository Participant (DP)) + nominee registration per SEBI Depositories Regulations 2018 + Indian Succession Act 1925 Section 63 + Will + codicil + executor + LoA + succession certificate + Hindu Succession Act 1956 Section 6 coparcener + Indian Trust Act 1882 Section 3+5+6 trust deed. Section 56(2)(vii) FULL EXEMPT for nominee receiving equity shares from specified relative (debated for shares per CBDT Circular 6/2016 narrow reading — typically not applicable); nominee claim per Section 39 EPF Act analog + Section 62(2)(c) Indian Succession Act analog for unlisted shares. Section 47(iv) bonus shares cost = nil per Section 55(2)(iv); Section 47(xiii) / Section 47(xiv) demerger capital asset conversion NOT treated as transfer for capital gains; Section 47(i) / (iii) personal transfers + gift + conversion NOT treated as transfer. Senior 60+ parent NRI / OCI Indian Preferential Allotment (Section 62(1)(a) Companies Act 2013) + Rights Issue (Section 62(1)(a) + Section 62(1)(c) Companies Act 2013) + Bonus Shares (Section 63 Companies Act 2013) + Demerger (Section 230-232 Companies Act 2013 NCLT scheme + Section 47(xiii) / Section 47(xiv) Income Tax Act 1961) + IPO + FPO + OFS offer for sale + Buyback (SEBI Buyback Regulations 2018) + ESOP (Employee Stock Option Plan — perquisite under Section 17 + Section 17(2)(vi) + Section 17(2)(vii)).

Senior 60+ parent NRI / OCI Indian Direct Equity FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA PIS (Portfolio Investment Scheme) route per Schedule 3 of FEMA 1999 + RBI PIS Master Direction 2024 + Form A2 + AD-1 + NRE / NRO demat account + CA certificate Form 15CB; 7-year NRO retention debated (typically equity sale proceeds treated as current income repatriable immediately per RBI Circular 47/2015 + 12/2015); FEMA compounding penalty up to 3x per FEMA 1999 Section 13. DTAA Article 13 capital gains + Article 11 interest + Article 10 dividend (US-India DTAA Article 10 — typically 15% withholding on dividend from Indian company to US person; saving clause applies) + saving clause + MAV main purpose test + Form 8833 treaty disclosure + Section 6114 + 25% treaty penalty + Section 7701(b) treaty tie-breaker + Estate Tax Treaty + Gift Tax Treaty; Section 90(4) 8-year retention of TRC + Form 67 mandatory per CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules; Section 90(5) limitation of benefits + panchnama if AO suspects non-genuine treaty claim; Section 285BA AIR + Form 61A. Form 8938 FATCA required if foreign equity held by US person > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ); FBAR FinCEN 114 if foreign equity account aggregate > USD 10K at any point during calendar year; PFIC Form 8621 for foreign equity (typically foreign stock treated as PFIC for US tax — QEF election or mark-to-market per Section 1295 + Section 1296 + Section 1297); Form 5471 CFC for foreign equity company > 50% US person ownership; Black Money Act 2015 + Form 3520 + Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty.

Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + FEMA NRO 7y + 10y retention debated + FEMA compounding steps for senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026

Step 1

Step 1

Identify equity class — listed (NSE + BSE + large cap + mid cap + small cap + sectoral + thematic) + unlisted (startup + private company + closely-held + preference shares + convertible debentures + warrants) + PMS + preferential + rights + bonus + demerger + IPO + FPO + OFS + buyback + ESOP

Step 2

Step 2

Establish KYC + PAN + Aadhaar (resident) OR OCI card + passport + FATCA CRS declaration + UBO declaration (NRI / OCI); Section 50CA FMV (unlisted shares per Rule 11UAB + Rule 11UAC Income Tax Rules 1962); Section 50C stamp duty valuation NOT applicable

Step 3

Step 3

Compute Section 111A STCG 15% on listed equity (STT paid on recognised stock exchange) + Section 112A LTCG 10% on listed equity (12m+ + > INR 1 lakh aggregate + without indexation + 4% cess); Section 112 LTCG 20% on unlisted equity (24m+ + 4% cess + Indexation)

Step 4

Step 4

Apply STT 0.1% delivery + 0.025% intraday + 0.1% non-delivery + 0.2% futures + 0.1% options premium; Section 80CCG RGESS (closed for new subscribers) per Section 80CCG(2)(a) + 3-year lock-in + INR 25,000 deduction

Step 5

Step 5

Apply Section 49(1)/(2)/(2AA)/(2B)/(2C) cost inheritance + Section 55(2)(iii) FMV 2001 + FIFO method; Section 47(iv) bonus shares cost = nil

Step 6

Step 6

Apply Section 56(2)(vii) FULL EXEMPT for nominee receiving equity shares (debated for shares); Section 56(2)(xi) deemed gift > INR 50,000 (recipient hands)

Step 7

Step 7

Apply Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13 + Section 197A lower TDS + Section 194 dividend TDS + Section 10(34) dividend exempt + Section 10(38) pre-2018 LTCG grandfathering exempt + Section 47(i)/(iii)/(xiii)/(xiv) non-transfer

Step 8

Step 8

Apply FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA PIS (Portfolio Investment Scheme) route per Schedule 3 of FEMA 1999 + RBI PIS Master Direction 2024 + Form A2 + AD-1 + NRE / NRO demat account + 7-year NRO retention debated

Step 9

Step 9

Apply DTAA Article 13 + 11 + 10 dividend + saving clause + MAV + Form 8833 + Section 6114 + 25% treaty penalty + Section 7701(b) treaty tie-breaker + Estate Tax Treaty + Gift Tax Treaty; Section 90(4) 8-year TRC + Form 67 mandatory

Step 10

Step 10

Apply Black Money Act 2015 30% tax + 30% penalty Section 10/11 BMA + Form 3520 + Form 3520-A + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Form 5471 CFC + Section 6662/6663/6677

Step 11

Step 11

Apply Section 671-679 grantor trust + Section 642/664 charitable remainder + Section 10(20/21/23BB) + Section 10(23C) + Section 10(34) + Section 10(38) + Section 10(23D) MF income exempt

Step 12

Step 12

File ITR + Schedule CG + Schedule FA + Schedule FSI + Schedule TR + Form 26AS + Form 16A + Section 90(4) 8-year retention; update demat (CDSL / NSDL) + FEMA NRO + 7y + 10y retention debated; AD-1 + Form A2 + CA certificate Form 15CB + FEMA ED RBI Master Direction 2024 + FEMA PIS Master Direction 2024 + SEBI (Portfolio Managers) Regulations 1993

Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO 7y + 10y retention debated + FEMA compounding + senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026 diagram

<svg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 1200 720' font-family='system-ui,-apple-system,sans-serif'> <defs> <linearGradient id='grad-bg' x1='0' y1='0' x2='0' y2='1'> <stop offset='0%' stop-color='#4338CA'/> <stop offset='100%' stop-color='#312E81'/> </linearGradient> <linearGradient id='grad-card' x1='0' y1='0' x2='0' y2='1'> <stop offset='0%' stop-color='#FFFFFF'/> <stop offset='100%' stop-color='#E0E7FF'/> </linearGradient> <linearGradient id='grad-pill' x1='0' y1='0' x2='1' y2='0'> <stop offset='0%' stop-color='#4338CA'/> <stop offset='100%' stop-color='#312E81'/> </linearGradient> </defs> <rect width='1200' height='720' fill='url(#grad-bg)'/> <text x='600' y='52' font-size='28' font-weight='700' fill='#FFFFFF' text-anchor='middle'>NRI Parent Direct Equity + Listed + Unlisted + PMS + Preferential + Rights + Bonus + Demerger + IPO + FPO Stack</text> <text x='600' y='80' font-size='16' font-weight='500' fill='#C7D2FE' text-anchor='middle'>Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA PIS + DTAA + BMA + FATCA + FBAR + PFIC</text> <rect x='80' y='110' width='320' height='130' rx='14' fill='url(#grad-card)' stroke='#4338CA' stroke-width='2'/> <text x='240' y='138' font-size='14' font-weight='700' fill='#312E81' text-anchor='middle'>EQUITY CLASS</text> <text x='240' y='168' font-size='13' fill='#0F172A' text-anchor='middle'>Listed + Unlisted</text> <text x='240' y='190' font-size='13' fill='#0F172A' text-anchor='middle'>PMS + Preferential + Rights</text> <text x='240' y='212' font-size='13' fill='#0F172A' text-anchor='middle'>Bonus + Demerger + IPO + FPO</text> <rect x='440' y='110' width='320' height='130' rx='14' fill='url(#grad-card)' stroke='#4338CA' stroke-width='2'/> <text x='600' y='138' font-size='14' font-weight='700' fill='#312E81' text-anchor='middle'>CAPITAL GAINS</text> <text x='600' y='168' font-size='13' fill='#0F172A' text-anchor='middle'>Section 111A STCG 15%</text> <text x='600' y='190' font-size='13' fill='#0F172A' text-anchor='middle'>Section 112A LTCG 10%</text> <text x='600' y='212' font-size='13' fill='#0F172A' text-anchor='middle'>Section 112 LTCG 20%</text> <rect x='800' y='110' width='320' height='130' rx='14' fill='url(#grad-card)' stroke='#4338CA' stroke-width='2'/> <text x='960' y='138' font-size='14' font-weight='700' fill='#312E81' text-anchor='middle'>STT + 50CA</text> <text x='960' y='168' font-size='13' fill='#0F172A' text-anchor='middle'>STT 0.1% / 0.025%</text> <text x='960' y='190' font-size='13' fill='#0F172A' text-anchor='middle'>Section 50CA FMV</text> <text x='960' y='212' font-size='13' fill='#0F172A' text-anchor='middle'>unlisted shares</text> <rect x='80' y='270' width='320' height='130' rx='14' fill='url(#grad-card)' stroke='#4338CA' stroke-width='2'/> <text x='240' y='298' font-size='14' font-weight='700' fill='#312E81' text-anchor='middle'>SECTION 80CCG RGESS</text> <text x='240' y='328' font-size='13' fill='#0F172A' text-anchor='middle'>Closed for new subscribers</text> <text x='240' y='350' font-size='13' fill='#0F172A' text-anchor='middle'>3-year lock-in</text> <text x='240' y='372' font-size='13' fill='#0F172A' text-anchor='middle'>INR 25,000 deduction</text> <rect x='440' y='270' width='320' height='130' rx='14' fill='url(#grad-card)' stroke='#4338CA' stroke-width='2'/> <text x='600' y='298' font-size='14' font-weight='700' fill='#312E81' text-anchor='middle'>FEMA PIS + LRS</text> <text x='600' y='328' font-size='13' fill='#0F172A' text-anchor='middle'>Schedule 3 FEMA 1999</text> <text x='600' y='350' font-size='13' fill='#0F172A' text-anchor='middle'>USD 1M / year</text> <text x='600' y='372' font-size='13' fill='#0F172A' text-anchor='middle'>NRE / NRO demat CDSL / NSDL</text> <rect x='800' y='270' width='320' height='130' rx='14' fill='url(#grad-card)' stroke='#4338CA' stroke-width='2'/> <text x='960' y='298' font-size='14' font-weight='700' fill='#312E81' text-anchor='middle'>HEIR + GIFT</text> <text x='960' y='328' font-size='13' fill='#0F172A' text-anchor='middle'>Section 56(2)(vii)</text> <text x='960' y='350' font-size='13' fill='#0F172A' text-anchor='middle'>FULL EXEMPT debated</text> <text x='960' y='372' font-size='13' fill='#0F172A' text-anchor='middle'>Section 49(2)(iii) cost</text> <rect x='80' y='430' width='320' height='130' rx='14' fill='url(#grad-card)' stroke='#4338CA' stroke-width='2'/> <text x='240' y='458' font-size='14' font-weight='700' fill='#312E81' text-anchor='middle'>FEMA USD 1M</text> <text x='240' y='488' font-size='13' fill='#0F172A' text-anchor='middle'>Form A2 + AD-1</text> <text x='240' y='510' font-size='13' fill='#0F172A' text-anchor='middle'>7y NRO retention debated</text> <text x='240' y='532' font-size='13' fill='#0F172A' text-anchor='middle'>10y US/UK/CA/AU retention</text> <rect x='440' y='430' width='320' height='130' rx='14' fill='url(#grad-card)' stroke='#4338CA' stroke-width='2'/> <text x='600' y='458' font-size='14' font-weight='700' fill='#312E81' text-anchor='middle'>DTAA</text> <text x='600' y='488' font-size='13' fill='#0F172A' text-anchor='middle'>Article 13 capital gains</text> <text x='600' y='510' font-size='13' fill='#0F172A' text-anchor='middle'>Article 10 dividend 15%</text> <text x='600' y='532' font-size='13' fill='#0F172A' text-anchor='middle'>90(4) 8-year TRC</text> <rect x='800' y='430' width='320' height='130' rx='14' fill='url(#grad-card)' stroke='#4338CA' stroke-width='2'/> <text x='960' y='458' font-size='14' font-weight='700' fill='#312E81' text-anchor='middle'>BLACK MONEY ACT</text> <text x='960' y='488' font-size='13' fill='#0F172A' text-anchor='middle'>30% tax + 30% penalty 10/11</text> <text x='960' y='510' font-size='13' fill='#0F172A' text-anchor='middle'>Form 3520 + 3520-A</text> <text x='960' y='532' font-size='13' fill='#0F172A' text-anchor='middle'>8938 FATCA + FBAR 114</text> <rect x='260' y='590' width='680' height='90' rx='14' fill='url(#grad-pill)'/> <text x='600' y='620' font-size='16' font-weight='700' fill='#FFFFFF' text-anchor='middle'>NRI PARENT SENIOR 60+ PARENT ESTATE — SEBI + CDSL/NSDL + FEMA PIS + FEMA 1999</text> <text x='600' y='648' font-size='13' fill='#C7D2FE' text-anchor='middle'>Section 671-679 + 642/664 + PFIC Form 8621 + Section 6662 20-40% + Section 6663 75% + Section 6677 USD 10,000</text> <text x='600' y='670' font-size='12' fill='#C7D2FE' text-anchor='middle'>Companies Act 2013 Section 62 + 63 + 230-232 + SEBI Takeover Regulations 2011 + FEMA ED RBI Master Direction 2024</text> <line x1='400' y1='240' x2='400' y2='270' stroke='#FFFFFF' stroke-width='1.5'/> <line x1='600' y1='240' x2='600' y2='270' stroke='#FFFFFF' stroke-width='1.5'/> <line x1='800' y1='240' x2='800' y2='270' stroke='#FFFFFF' stroke-width='1.5'/> <line x1='240' y1='400' x2='240' y2='430' stroke='#FFFFFF' stroke-width='1.5'/> <line x1='600' y1='400' x2='600' y2='430' stroke='#FFFFFF' stroke-width='1.5'/> <line x1='960' y1='400' x2='960' y2='430' stroke='#FFFFFF' stroke-width='1.5'/> <line x1='600' y1='560' x2='600' y2='590' stroke='#FFFFFF' stroke-width='1.5'/></svg>

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Senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + FEMA NRO 7y + 10y retention debated + FEMA compounding checklist

  • Classify equity — listed + unlisted + PMS + preferential + rights + bonus + demerger + IPO + FPO + OFS + buyback + ESOP before anything else
  • Establish KYC + PAN + Aadhaar (resident) OR OCI card + passport + FATCA CRS declaration + UBO declaration (NRI / OCI); Section 50CA FMV (unlisted shares per Rule 11UAB + Rule 11UAC Income Tax Rules 1962); Section 50C stamp duty valuation NOT applicable
  • Apply Section 111A STCG 15% on listed equity (STT paid on recognised stock exchange NSE / BSE) per Section 36(1)(x) deduction
  • Apply Section 112A LTCG 10% on listed equity (holding > 12 months + sale consideration > INR 1 lakh aggregate per year + without indexation + 4% cess)
  • Apply Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation Section 48(ii) CII 2001 base per Section 55(2)(iii) FMV for shares acquired before 01-04-2001)
  • Apply STT 0.1% delivery + 0.025% intraday + 0.1% non-delivery + 0.2% futures + 0.1% options premium per Section 36(1)(x) deduction
  • Apply Section 80CCG Rajiv Gandhi Equity Savings Scheme (RGESS) — closed for new subscribers but existing holdings continue per Section 80CCG(2)(a) + 3-year lock-in + Section 80CCG(2)(c) + INR 25,000 deduction
  • Apply Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inherited for equity transferred at death; Section 55(2)(iii) FMV 2001; FIFO method for multiple purchases of same scrip; Section 47(iv) bonus shares cost = nil
  • Apply Section 56(2)(vii) FULL EXEMPT for nominee receiving equity shares from specified relative (debated for shares); nominee claim per Section 39 EPF Act analog + Section 62(2)(c) Indian Succession Act analog for unlisted shares + demat transmission per SEBI Depositories Regulations
  • Apply Section 56(2)(xi) deemed gift > INR 50,000 (recipient hands) if equity received without consideration
  • Apply Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13 + Section 197A lower TDS
  • Apply Section 194 dividend TDS + Section 10(34) dividend exempt + Section 10(38) pre-2018 LTCG grandfathering exempt + Section 47(i)/(iii)/(xiii)/(xiv) non-transfer + Section 115BBA tax on dividend @ 20% (debated — typically Article 10 DTAA rate applies for US-India 15%)
  • Apply FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA PIS (Portfolio Investment Scheme) route per Schedule 3 of FEMA 1999 + RBI PIS Master Direction 2024 + Form A2 + AD-1 + NRE / NRO demat account + 7-year NRO retention debated
  • Apply FEMA compounding penalty up to 3x per FEMA 1999 Section 13 for non-compliance
  • Apply DTAA Article 13 capital gains + Article 11 interest + Article 10 dividend (US-India DTAA Article 10 — typically 15% withholding on dividend from Indian company to US person; saving clause applies) + saving clause + MAV main purpose test + Form 8833 treaty disclosure + Section 6114 + 25% treaty penalty + Section 7701(b) treaty tie-breaker
  • Apply Estate Tax Treaty + Gift Tax Treaty for US / UK / CA / AU estate / gift tax on Indian equity; Form 706-NA + Form 706 for US estate tax; Form 709 for US gift tax; Section 877A expatriation tax
  • Apply Section 90(4) 8-year retention of TRC + Form 67 mandatory; CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules
  • Apply Section 90(5) limitation of benefits + panchnama if AO suspects non-genuine treaty claim; Section 285BA AIR + Form 61A
  • Apply Black Money Act 2015 — 30% tax + 30% penalty Section 10/11 BMA for undisclosed foreign income / assets
  • Apply Form 3520 + Form 3520-A for foreign trust distribution / ownership + Section 6048 reporting; Form 5471 CFC for foreign equity company > 50% US person ownership
  • Apply Form 8938 FATCA required if foreign equity held by US person > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ)
  • Apply FBAR FinCEN 114 if foreign equity account aggregate > USD 10K at any point during calendar year
  • Apply PFIC Form 8621 for foreign equity (typically foreign stock treated as PFIC for US tax — QEF election or mark-to-market per Section 1295 + Section 1296 + Section 1297)
  • Apply Section 671-679 grantor trust — equity held by foreign grantor trust for US person: grantor reports 100% trust income on Form 1040
  • Apply Section 642/664 charitable remainder — donor retains interest + charity remainder with Form 5227 split-interest + Form 1041-A charitable trust
  • Apply Section 6662 20-40% accuracy penalty + Section 6663 75% fraud penalty + Section 6677 USD 10,000 foreign trust penalty for non-compliance
  • Apply Section 10(20/21/23BB) registered valuer exempt + Section 10(23C) charitable + Section 10(34) dividend exempt + Section 10(38) pre-2018 LTCG grandfathering exempt + Section 10(23D) MF income exempt
  • Apply SEBI (Portfolio Managers) Regulations 1993 + SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011 + SEBI (Buyback of Securities) Regulations 2018 + Companies Act 2013 Section 62 + 63 + 230-232 NCLT scheme + Section 47(xiii)/(xiv) Income Tax Act 1961
  • Apply Indian Succession Act 1925 Section 63 + Will + codicil + executor + LoA + succession certificate + Hindu Succession Act 1956 Section 6 coparcener + Indian Trust Act 1882 Section 3+5+6 trust deed + FEMA NRO for heir
  • Apply FEMA ED RBI Master Direction 2024 + PMLA FIU-IND (Financial Intelligence Unit India) reporting mandatory for Indian equity remittance + 7.5% TCS Section 206C(1G) above INR 50 lakh + 20% TCS Section 206CCA
  • File ITR + Schedule CG + Schedule FA + Schedule FSI + Schedule TR + Form 26AS + Form 16A + Section 90(4) 8-year retention
  • Update demat (CDSL / NSDL Depository Participant (DP)) + KYC compliance + FEMA NRO + 7y + 10y retention debated
  • Consult CA + lawyer + FEMA expert + SEBI expert + US tax preparer jointly

Share NRI parent Indian Direct Equity + Listed + Unlisted + PMS + Preferential + Rights + Bonus + Demerger + IPO + FPO + Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + Section 80CCG + FEMA PIS + FEMA USD 1M / year + DTAA + Black Money Act 2015 + Form 3520 + FEMA NRO 7y + 10y retention debated + senior 60+ parent estate India 2026

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Senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO 7y + 10y retention debated + FEMA compounding closing

Senior 60+ parent estate NRI / OCI parent Indian Direct Equity — listed + unlisted + PMS + preferential + rights + bonus + demerger + IPO + FPO + OFS + buyback + ESOP — is the heaviest compliance asset class in the personal-finance asset universe. Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA Article 13 + 11 + 10 dividend + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO 7y + 10y retention debated + FEMA compounding — every section, every form, every treaty, every retention clock points at the same equity folio. The senior 60+ parent estate NRI parent must choose between ordinary compliance — full Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + Section 195 NRI TDS + DTAA + FEMA + Black Money Act + FATCA + FBAR + PFIC + 671-679 — and grandfathered past investments — Section 10(38) pre-2018 LTCG exempt + Section 80CCG RGESS 3-year lock-in. Once the nominee receives the equity shares, demat (CDSL / NSDL DP) nominee registration + SEBI Depositories Regulations 2018 + Indian Succession Act 1925 Will + codicil + executor kick in; Section 56(2)(vii) FULL EXEMPT fires for nominee from specified relative (debated for shares per CBDT Circular 6/2016 narrow reading); Section 49(2)(iii) cost inheritance applies. The 7-year NRO retention debated (typically equity sale proceeds repatriable immediately per RBI Circular 47/2015 + 12/2015) + 10-year US/UK/CA/AU retention + Section 90(4) 8-year retention + Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty + FEMA compounding penalty up to 3x are all ticking in parallel. The cluster ties together 9 articles — NRI parent inherited property + Will + heir + Section 45 + 47(vii) + 49 + 56(2)(vii) → NRI parent capital gains Section 45 + 48 + 50C + 54 + 54F + 54B + 54EC + 111A + 112 + STT + Indexation + 194-IA + 195 + FEMA USD 1M / year → NRI parent US income tax Form 1040 + Schedule D + FBAR + FATCA + PFIC + CFC → NRI parent US estate tax + gift tax + GSTT + Section 877A + Form 706 + 709 + Estate Tax Treaty + Gift Tax Treaty → NRI parent Indian AIF Category I + Category II + Category III + PMS → NRI parent Indian bonds + NCD + debentures + Government Securities + RBI Bonds + Section 54EC REC + NHAI + IRFC + PFC → NRI parent Indian Bank FD + SCSS + POMIS + PPF + RBI FRSB + Section 80C + 80TTB + 193 + 80D + 80DDB → NRI parent Indian Gold + Silver + Bullion + Jewellery + Diamond + Platinum → NRI parent Indian Crypto + VDA + Bitcoin + Ethereum + USDT + Section 194S + 115BBH → NRI parent Indian Insurance + Life Insurance + LIC + ULIP + Health Insurance + Senior Citizen Health Insurance + Section 80C + 80D + 80DDB + Section 10(10D) + Section 194DA → NRI parent Indian Real Estate + Residential + Commercial + Under-construction + RERA + Section 194-IA 1% TDS + Section 50C stamp duty valuation + Section 56(2)(vii) heir exempt + Section 54 + 54F + Section 80C + Section 24(b) + Section 80EEA → NRI parent Indian Pension + EPF + VPF + Gratuity + Leave Encashment + NPS Tier 1 + Tier 2 + APY + Section 10(10AA) + 10(10C) + 17 + 89 + 80CCD(1B) + 23(5AA)/(5ABA) + Form 19 + Form 10C + Form 13 + Form 10D + EPF Act 1952 + EPS 1995 → NRI parent Indian Mutual Fund + SIP + SWP + STP + Equity + Debt + Hybrid + ELSS + Index Fund + ETF + Section 45 + Section 48 + Section 50CA FMV + Section 111A + Section 112 + Section 112A + STT + Section 80C ELSS + FEMA USD 1M / year + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + FEMA NRO 7y + 10y retention debated + FEMA compounding — and now NRI parent Indian Direct Equity + Listed + Unlisted + PMS + Preferential + Rights + Bonus + Demerger + IPO + FPO + Section 45 + Section 48 + Section 50CA FMV + Section 111A STCG 15% + Section 112 LTCG 20% + Section 112A LTCG 10% + STT 0.1% / 0.025% + Section 80CCG RGESS + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + FEMA NRO 7y + 10y retention debated + FEMA compounding. Cross-link rule: every new article in this cluster must link to the prior article in the chain so that the cluster reads as one continuous thread of senior 60+ parent NRI / OCI compliance.

Bottom line for the senior 60+ parent estate NRI / OCI parent: Indian Direct Equity + Listed + Unlisted + PMS + Preferential + Rights + Bonus + Demerger + IPO + FPO + OFS + Buyback + ESOP is the heaviest compliance asset class — every Section + every form + every treaty + every retention clock converges on the equity folio. Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + 80CCG + FEMA USD 1M / year + FEMA PIS + DTAA Article 13 + 11 + 10 dividend + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + Section 642/664 + FEMA NRO 7y + 10y retention debated + FEMA compounding — the senior 60+ parent estate NRI parent must coordinate CA + lawyer + FEMA expert + SEBI expert + US tax preparer jointly. For a single-equity family holding the typical chain is: senior 60+ parent NRI / OCI acquires Indian equity (listed + unlisted + PMS + preferential + rights + bonus + demerger + IPO + FPO + OFS + buyback + ESOP) via FEMA USD 1M / year LRS + FEMA PIS (Portfolio Investment Scheme) route + NRE / NRO demat (CDSL / NSDL); equity tracked via PAN + Aadhaar OR OCI card + passport + FATCA CRS; senior 60+ parent redeems equity after holding period; pays Section 111A STCG 15% (listed) OR Section 112A LTCG 10% (listed 12m+ + > INR 1 lakh aggregate) OR Section 112 LTCG 20% (unlisted 24m+ + 4% cess + Indexation); Section 195 NRI TDS + DTAA rate; FEMA Form A2 + AD-1 + USD 1M / year LRS; on death of senior 60+ parent, Indian Succession Act 1925 + Will + codicil + executor + LoA + succession certificate + Hindu Succession Act 1956 Section 6 coparcener + Indian Trust Act 1882 Section 3+5+6 trust deed + FEMA NRO for heir; heir inherits nominee rights per demat transmission + SEBI Depositories Regulations 2018; Section 56(2)(vii) FULL EXEMPT for nominee from specified relative (debated for shares); Section 49(2)(iii) cost inheritance applies; pays Section 111A / 112A / 112 on subsequent sale; files ITR + Schedule CG + Schedule FA + Schedule FSI + Schedule TR + Form 26AS + Form 16A + Form 67 (DTAA); retains TRC + Form 67 for 8 years per Section 90(4); reports Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 for foreign equity; repatriates via FEMA NRO within USD 1M / year LRS after 7-year retention debated (typically repatriable immediately per RBI Circular 47/2015 + 12/2015); files Form 3520 + Form 3520-A if foreign trust holds equity; pays Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 if undisclosed; FEMA compounding penalty up to 3x per FEMA 1999 Section 13. The compliance choreography is repetitive but the risk surface is wide — Section 50CA FMV debate for unlisted shares + Section 111A vs Section 112A STT debate for listed equity + Section 112 LTCG debate for unlisted equity + Indexation applicable only for unlisted equity per Section 48(ii) + Section 80CCG RGESS closure + PFIC Form 8621 typically required for foreign equity + DTAA Article 13 + Article 10 dividend 15% + Section 90(4) TRC + Section 90(5) panchnama + FEMA 7-year retention debate — all need careful coordination. Senior 60+ parent estate NRI / OCI Indian Direct Equity holding is governed by every layer simultaneously — there is no shortcut, no opt-out, no small case exemption. Always engage CA + lawyer + FEMA expert + SEBI expert + US tax preparer jointly.

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NRI parent senior 60+ Indian Direct Equity + Listed + Unlisted + PMS + Preferential + Rights + Bonus + Demerger + IPO + FPO matrix with Section 45 + 48 + 50CA + 111A + 112 + 112A + STT + Section 80CCG RGESS + FEMA USD 1M / year + FEMA PIS + DTAA + TRC + Form 67 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + 642/664 + FEMA NRO 7y + 10y retention + FEMA compounding + senior 60+ parent estate India 2026. Animated decision map.
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Senior 60+ parent NRI / OCI sells Indian listed equity (NSE / BSE + large cap + mid cap + small cap) — what is the Section 45 + 48 + Section 111A STCG 15% + Section 112A LTCG 10% + STT 0.1% + Section 80CCG RGESS closure + FEMA USD 1M / year LRS + FEMA PIS + DTAA Article 13 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 + FEMA NRO 7y + 10y retention debated + FEMA compounding treatment for senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026?

Senior 60+ parent NRI / OCI sells Indian listed equity (NSE / BSE + large cap + mid cap + small cap) triggers Section 45 transfer + Section 48 computation; Section 50CA NOT applicable (only for unlisted shares); Section 111A STCG 15% on listed equity (STT paid on recognised stock exchange) per Section 36(1)(x) deduction; Section 112A LTCG 10% on listed equity (holding > 12 months + sale consideration > INR 1 lakh aggregate per year + without indexation + 4% cess). STT Securities Transaction Tax 0.1% on equity delivery purchase + 0.025% on equity intraday + 0.1% on equity non-delivery + 0.2% on equity futures + 0.1% on equity options premium per Section 36(1)(x) deduction. Section 80CCG Rajiv Gandhi Equity Savings Scheme (RGESS) — closed for new subscribers but existing holdings continue per Section 80CCG(2)(a) + 3-year lock-in + Section 80CCG(2)(c) + INR 25,000 deduction (50% of investment in RGESS-listed equity shares). Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13 + Section 197A lower TDS. Senior 60+ parent heir receiving equity shares inherits nominee rights per demat (CDSL / NSDL DP) + SEBI Depositories Regulations 2018 + Indian Succession Act 1925 Section 63 + Will + codicil + executor; Section 56(2)(vii) FULL EXEMPT for nominee receiving equity shares from specified relative (debated for shares per CBDT Circular 6/2016 narrow reading — typically not applicable); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inherited for equity transferred at death; FIFO method for multiple purchases of same scrip per Section 45 + 48. FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA PIS (Portfolio Investment Scheme) route per Schedule 3 of FEMA 1999 + RBI PIS Master Direction 2024 + Form A2 + AD-1 + NRE / NRO demat account + 7-year NRO retention debated (typically equity sale proceeds treated as current income repatriable immediately per RBI Circular 47/2015 + 12/2015) + 10-year US/UK/CA/AU retention for inheritance from person domiciled there; FEMA compounding penalty up to 3x per FEMA 1999 Section 13. DTAA Article 13 capital gains + Article 11 interest + Article 10 dividend (US-India DTAA Article 10 — typically 15% withholding on dividend from Indian company to US person; saving clause applies) + saving clause + MAV main purpose test + Form 8833 treaty disclosure + Section 6114 + 25% treaty penalty + Section 7701(b) treaty tie-breaker + Estate Tax Treaty + Gift Tax Treaty; Section 90(4) 8-year retention of TRC + Form 67 mandatory per CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules; Section 90(5) limitation of benefits + panchnama if AO suspects non-genuine treaty claim. Black Money Act 2015 — 30% tax + 30% penalty Section 10/11 BMA for undisclosed foreign income / foreign assets + Form 3520 + Form 3520-A + Section 6048 reporting; Form 8938 FATCA required if foreign equity held by US person > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ); FBAR FinCEN 114 if foreign equity account aggregate > USD 10K at any point during calendar year; PFIC Form 8621 for foreign equity (typically foreign stock treated as PFIC for US tax — QEF election or mark-to-market per Section 1295 + Section 1296 + Section 1297); Form 5471 CFC for foreign equity company > 50% US person ownership; Section 671-679 grantor trust + Section 642/664 charitable remainder + Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty.

Senior 60+ parent NRI / OCI sells Indian unlisted equity (startup + private company + closely-held + preference shares) — what is the Section 45 + 48 + Section 50CA FMV (Rule 11UAB + Rule 11UAC) + Section 112 LTCG 20% on unlisted equity + Indexation Section 48(ii) CII 2001 base + FEMA USD 1M / year + FEMA PIS + DTAA Article 13 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 treatment for senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026?

Senior 60+ parent NRI / OCI sells Indian unlisted equity (startup + private company + closely-held + preference shares) triggers Section 45 transfer + Section 48 computation + Section 50CA FMV (Fair Market Value method for unlisted shares per Section 50CA(1) read with Rule 11UAB + Rule 11UAC of Income Tax Rules 1962 — applicable to ALL unlisted shares including startup private company shares + closely-held shares + PMS concentrated unlisted position + preference shares); Section 50C stamp duty valuation NOT applicable (only immovable property). Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation Section 48(ii) CII 2001 base per Section 55(2)(iii) FMV for shares acquired before 01-04-2001); Section 111A STCG 15% NOT applicable (no STT paid on unlisted equity sale); Section 112A LTCG 10% NOT applicable (only listed equity). STT NOT applicable to unlisted equity. Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13 + Section 197A lower TDS. Senior 60+ parent heir receiving unlisted equity inherits nominee rights per Section 39 EPF Act analog + Section 62(2)(c) Indian Succession Act analog for unlisted shares + Indian Succession Act 1925 Section 63 + Will + codicil + executor + LoA + succession certificate + Hindu Succession Act 1956 Section 6 coparcener + Indian Trust Act 1882 Section 3+5+6 trust deed; Section 56(2)(vii) FULL EXEMPT for nominee from specified relative (debated for shares per CBDT Circular 6/2016 narrow reading — typically not applicable); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inherited for unlisted equity transferred at death; FIFO method for multiple purchases of same unlisted scrip per Section 45 + 48; demat transmission for unlisted equity + Section 50CA FMV on subsequent sale by heir. FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA prior RBI approval debated for unlisted equity acquisition (typically NOT required for purchase of unlisted shares from existing NRI seller — RBI Circular + LRS limit applies; required for fresh acquisition from Indian company per FDI policy / ECB / FPI rules) + Form A2 + AD-1 + NRE / NRO demat account + 7-year NRO retention debated (typically unlisted equity sale proceeds treated as current income repatriable immediately per RBI Circular 47/2015 + 12/2015); FEMA compounding penalty up to 3x per FEMA 1999 Section 13. DTAA Article 13 capital gains + Article 11 interest + Article 10 dividend + saving clause + MAV main purpose test + Form 8833 treaty disclosure + Section 6114 + 25% treaty penalty + Section 7701(b) treaty tie-breaker + Estate Tax Treaty + Gift Tax Treaty; Section 90(4) 8-year retention of TRC + Form 67 mandatory; CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules; Section 90(5) panchnama if AO suspects non-genuine treaty claim. Black Money Act 2015 — 30% tax + 30% penalty Section 10/11 BMA for undisclosed foreign income / assets + Form 3520 + Form 3520-A + Section 6048 reporting; Form 8938 FATCA required if foreign unlisted equity held by US person > USD 50K end-of-year; FBAR FinCEN 114 if foreign unlisted equity account aggregate > USD 10K; PFIC Form 8621 for foreign unlisted equity; Form 5471 CFC for foreign unlisted equity company > 50% US person ownership; Section 671-679 grantor trust; Section 642/664 charitable remainder; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty.

Senior 60+ parent NRI / OCI dies holding Indian Direct Equity (listed + unlisted + PMS + preferential + rights + bonus) — what is the nominee route per demat (CDSL / NSDL DP) + SEBI Depositories Regulations 2018 + transmission, Section 39 EPF Act analog, Section 56(2)(vii) FULL EXEMPT debate, FEMA NRO 7y retention debated, FEMA USD 1M / year repatriation, Estate Tax Treaty, Gift Tax Treaty, Black Money Act 2015, Form 3520 treatment for senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026?

Senior 60+ parent NRI / OCI dies holding Indian Direct Equity (listed + unlisted + PMS + preferential + rights + bonus) — nominee receives equity shares per demat (CDSL / NSDL DP) nominee registration per SEBI Depositories Regulations 2018 + Indian Succession Act 1925 Section 63 + Will + codicil + executor + LoA + succession certificate + Hindu Succession Act 1956 Section 6 coparcener + Indian Trust Act 1882 Section 3+5+6 trust deed; nomination in demat typically overrides Will for equity shares per SEBI Depositories Regulations 2018 (debated — typically DP follows nomination if nomination is registered; if nomination challenged in court, Will prevails). Section 56(2)(vii) FULL EXEMPT for nominee receiving equity shares from specified relative (debated for shares per CBDT Circular 6/2016 narrow reading — typically not applicable); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inherited for equity transferred at death; Section 55(2)(iii) FMV 2001 as cost of acquisition for shares acquired before 01-04-2001. FEMA Form A2 + AD-1 + FEMA NRO for heir — equity shares inherited through inheritance non-repatriable for 7 years debated (typically equity sale proceeds treated as current income repatriable immediately per RBI Circular 47/2015 + 12/2015); repatriation permitted within USD 1M / year LRS; FEMA compounding penalty up to 3x per FEMA 1999 Section 13. 10-year US/UK/CA/AU retention for inheritance from person domiciled there. FEMA NRO repatriation within USD 1M / year LRS after retention. Section 195 NRI TDS + Section 194 + Section 195 r.w. 194 + 196D TDS credited against DTAA limit per Article 13 + 11 + 10 dividend; TRC + Form 67 mandatory per Section 90(4) 8-year retention + Section 90(5) panchnama; FEMA + DTAA both applicable; equity sale income repatriable immediately subject to Section 195 r.w. 194 NRI TDS + Section 90 DTAA. Estate Tax Treaty + Gift Tax Treaty for US / UK / CA / AU estate / gift tax on Indian equity (US-India Estate Tax Treaty 1957 has saving clause + Article 5 immovable property + Article 11 deduction); Form 706-NA + Form 706 for US estate tax; Form 709 for US gift tax; Section 877A expatriation tax. Black Money Act 2015 — 30% tax + 30% penalty Section 10/11 BMA for undisclosed foreign income / assets + Form 3520 + Form 3520-A + Section 6048 reporting; PFIC Form 8621 for foreign equity; Section 671-679 grantor trust; Section 642/664 charitable remainder; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty.

Senior 60+ parent NRI / OCI receives Indian PMS (Portfolio Management Service) — what is the Section 45 + 48 + Section 50CA FMV (Rule 11UAB + Rule 11UAC) for concentrated unlisted position + Section 112 LTCG 20% + Indexation Section 48(ii) + SEBI PMS Regulations 1993 + minimum INR 50 lakh investment + 2-3% fees + FEMA USD 1M / year + DTAA Article 13 + Section 90(4) 8-year + Black Money Act 2015 + Form 3520 treatment for senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026?

Senior 60+ parent NRI / OCI receives Indian PMS (Portfolio Management Service) triggers Section 45 transfer + Section 48 computation + Section 50CA FMV (Fair Market Value method for unlisted shares per Section 50CA(1) read with Rule 11UAB + Rule 11UAC of Income Tax Rules 1962 — for concentrated unlisted positions in PMS); Section 50C stamp duty valuation NOT applicable (only immovable property). Section 112 LTCG 20% on unlisted equity (holding > 24 months + 4% cess + Indexation Section 48(ii) CII 2001 base) OR Section 111A STCG 15% (for listed equity in PMS) OR Section 112A LTCG 10% (for listed equity in PMS 12m+ + > INR 1 lakh aggregate per year); STT per Section 36(1)(x) deduction. SEBI PMS Regulations 1993 — minimum INR 50 lakh investment + 2-3% fees + PMS distributor + portfolio manager license + agreement + risk profiling + KYC compliance. Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13. Senior 60+ parent heir receiving PMS units inherits nominee rights per PMS agreement + SEBI PMS Regulations 1993 + Indian Succession Act 1925 Section 63 + Will + codicil + executor; Section 56(2)(vii) FULL EXEMPT for nominee from specified relative (debated for shares); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost of acquisition inherited for PMS concentrated unlisted position; FIFO method per Section 45 + 48. FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA prior RBI approval debated for PMS (typically NOT required for PMS subscription per FEMA 1999 — LRS limit applies); FEMA compounding penalty up to 3x per FEMA 1999 Section 13. DTAA Article 13 capital gains + Article 11 interest + Article 10 dividend + saving clause + MAV main purpose test + Form 8833 treaty disclosure + Section 6114 + 25% treaty penalty + Section 7701(b) treaty tie-breaker + Estate Tax Treaty + Gift Tax Treaty; Section 90(4) 8-year retention of TRC + Form 67 mandatory; CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules; Section 90(5) panchnama if AO suspects non-genuine treaty claim. Black Money Act 2015 — 30% tax + 30% penalty Section 10/11 BMA for undisclosed foreign income / assets + Form 3520 + Form 3520-A + Section 6048 reporting; Form 8938 FATCA required if foreign PMS equivalent held by US person > USD 50K end-of-year; FBAR FinCEN 114 if foreign PMS account aggregate > USD 10K; PFIC Form 8621 for foreign PMS; Form 5471 CFC for foreign PMS company > 50% US person ownership; Section 671-679 grantor trust; Section 642/664 charitable remainder; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty.

Senior 60+ parent NRI / OCI receives Indian ESOP (Employee Stock Option Plan) from Indian employer — what is the Section 17(2)(vi) / Section 17(2)(vii) perquisite treatment, Section 49(1) cost = FMV on exercise / vesting date, Section 111A / 112A / 112 on subsequent sale, FEMA USD 1M / year + FEMA PIS, DTAA Article 14 employment income + Article 13 capital gains, Section 90(4) 8-year, Black Money Act 2015, Form 3520 treatment for senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026?

Senior 60+ parent NRI / OCI receives Indian ESOP (Employee Stock Option Plan) from Indian employer triggers Section 17(2)(vi) ESOP perquisite — fair market value of ESOP on exercise date taxed as salary income perquisite; Section 17(2)(vii) ESOP RSU / RSU (Restricted Stock Units) — fair market value on vesting date taxed as salary income perquisite; Section 49(1)/(2) cost of acquisition for ESOP shares = FMV on exercise / vesting date per Section 55(2)(iii) read with Rule 8D; Section 45 transfer on subsequent sale; Section 111A STCG 15% / Section 112A LTCG 10% (listed equity) / Section 112 LTCG 20% (unlisted equity 24m+ + 4% cess + Indexation); Section 192 + Section 195 NRI TDS at applicable rate + DTAA rate + Section 197 lower-rate certificate + Form 13. Senior 60+ parent heir receiving ESOP inherits nominee rights per ESOP scheme + Indian Succession Act 1925 Section 63 + Will + codicil + executor; Section 56(2)(vii) FULL EXEMPT for nominee from specified relative (debated for shares); Section 49(1)/(2)/(2AA)/(2B)/(2C) cost inheritance for ESOP transferred at death. FEMA USD 1M / year LRS per FEMA 1999 + RBI Master Direction 2024 + FEMA prior RBI approval debated for ESOP (typically NOT required for ESOP from Indian employer to NRI employee per FEMA 1999 + RBI Master Direction 2024 — employment income; required if NRI employee wants to repatriate ESOP sale proceeds above LRS limit); FEMA compounding penalty up to 3x per FEMA 1999 Section 13. DTAA Article 14 employment income (US-India DTAA Article 14 — personal services / employment income typically taxable in source country where services performed; saving clause applies); Article 13 capital gains on subsequent sale; Section 90(4) 8-year retention of TRC + Form 67 mandatory; CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules; Section 90(5) panchnama if AO suspects non-genuine treaty claim. Black Money Act 2015 — 30% tax + 30% penalty Section 10/11 BMA for undisclosed foreign income / assets + Form 3520 + Form 3520-A + Section 6048 reporting; Form 8938 FATCA required if foreign ESOP shares held by US person > USD 50K end-of-year; FBAR FinCEN 114 if foreign ESOP account aggregate > USD 10K; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty.

Senior 60+ parent NRI / OCI repatriates Indian Direct Equity sale proceeds via FEMA USD 1M / year LRS + FEMA PIS — what is the FEMA 7-year NRO retention debated treatment, 10-year US/UK/CA/AU retention, Form A2 + AD-1, CA certificate Form 15CB, FEMA compounding penalty, Section 195 r.w. Section 194 NRI TDS, DTAA Article 13 + Article 10 dividend + saving clause + Estate Tax Treaty + Gift Tax Treaty + Section 90(4) 8-year retention + Black Money Act 2015 + Form 3520 + Form 8938 FATCA + FBAR FinCEN 114 + PFIC Form 8621 + Section 671-679 + Section 642/664 + Section 6662/6663/6677 treatment for senior 60+ parent estate NRI parent Indian Direct Equity Listed Unlisted PMS Preferential Rights Bonus Demerger IPO FPO India 2026?

Senior 60+ parent NRI / OCI repatriating Indian Direct Equity sale proceeds via FEMA USD 1M / year LRS + FEMA PIS — triggers FEMA 1999 Section 6(3) + Schedule 1 + RBI Master Direction 2024 + FEMA PIS (Portfolio Investment Scheme) route per Schedule 3 of FEMA 1999 + RBI PIS Master Direction 2024 + Form A2 + AD-1 + CA certificate Form 15CB. USD 1M / year LRS limit per FEMA 1999 + RBI Master Direction 2024 — repatriation of equity sale proceeds within LRS limit allowed; 7-year NRO retention debated (typically equity sale proceeds treated as current income repatriable immediately per RBI Circular 47/2015 + 12/2015); 10-year US/UK/CA/AU retention for inheritance from person domiciled there; equity sale proceeds repatriation allowed immediately per FEMA 1999 + RBI Master Direction 2024 (no 7-year retention for equity sale). FEMA compounding penalty up to 3x per FEMA 1999 Section 13 for non-compliance. Section 195 r.w. Section 194 NRI TDS at applicable rate + DTAA rate credited against DTAA Article 13 capital gains + Article 11 interest + Article 10 dividend (US-India DTAA Article 10 — typically 15% withholding on dividend from Indian company to US person; saving clause applies); Section 197 lower-rate certificate + Form 13 to claim DTAA benefit. Section 90(4) 8-year retention of TRC + Form 67 mandatory per Section 90(4); CBDT Notification 3/2022 + Circular 11/2022 + 12/2022 stricter rules; Section 90(5) panchnama if AO suspects non-genuine treaty claim. Section 90(5) limitation of benefits + Section 285BA AIR + Form 61A. Section 194 dividend TDS above INR 5,000 (basic threshold) + Section 195 NRI TDS at applicable rate + DTAA rate. Senior 60+ parent heir inheriting equity after 7-year NRO retention debated + 10-year US/UK/CA/AU retention — repatriation within USD 1M / year LRS; AD-1 + Form A2 + CA certificate Form 15CB mandatory for > USD 5,000 net after tax. Estate Tax Treaty + Gift Tax Treaty for US / UK / CA / AU estate / gift tax on Indian equity (US-India Estate Tax Treaty 1957 has saving clause + Article 5 immovable property + Article 11 deduction); Form 706-NA + Form 706 for US estate tax; Form 709 for US gift tax; Section 877A expatriation tax. Black Money Act 2015 — 30% tax + 30% penalty Section 10/11 BMA for undisclosed foreign income / assets + Form 3520 + Form 3520-A + Section 6048 reporting; Form 8938 FATCA required if foreign equity held by US person > USD 50K end-of-year (single / MFS) or > USD 300K end-of-year (MFJ); FBAR FinCEN 114 if foreign equity account aggregate > USD 10K at any point during calendar year; PFIC Form 8621 for foreign equity; Form 5471 CFC for foreign equity company > 50% US person ownership; Section 671-679 grantor trust; Section 642/664 charitable remainder; Section 6662 20-40% accuracy + Section 6663 75% fraud + Section 6677 USD 10,000 foreign trust penalty.

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