[ESTABLISHING A BUSINESS ENTITY IN INDIA]
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4.4.4 Capital Gains: In the absence of stipulation of a lower rate of tax by the DTAA, capital gains can be repatriated out of India subject to withholding tax between 10% (ten percent) to 20% (twenty percent) (plus applicable surcharge and cess), depending on their nature. 4.4.5 Capital Repatriation on Disinvestment: AD Banks ordinarily allow repatriation of sale proceeds of a security (net of applicable taxes) provided the security is held on repatriation basis and the sale has been made in accordance with prescribed guidelines and tax
clearance/’no objection’ certificate from Indian tax authorities has been produced. Repatriation may be made through normal banking channels.
ILN Corporate Group – Establishing a Business Entity Series
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