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kc6498(Enthusiast)Enthusiast
12 Sept 2024

Hello Experts ,

I am working here on 482 work visa and I have made some capital gains from investments in Stocks (Shares) in my country (India) which has Tax Treaty with Australia.

The Tax Assessment year in India is from 1st April 2023 to 31st March 2024 and I have already paid Capital Gain tax on it as per Indian Tax rules. I tried to read up the rules for ATO,

 I came across tax offset (FITO) and related terms, but I couldn't understand If I need to declare that Capital Gain income or not.

Can someone help to simplify this topic and understand if I need to report this capital gain from Indian stock trading (on which I have already paid taxes in India) to ATO while filing tax returns?

If Yes, in which section do I need to do that? Will I have to declare but not pay taxes on them here ? 

3,377 views
3 replies
3,377 views
3 replies

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Matt_ATO(Community Support)Community Support
13 Sept 2024

Howdy @ kc6498,


Yes. You need to declare your capital gains from foreign investments. As a resident for tax purposes, you need to report your worldwide income.


If you’ve already paid capital gains tax in India, you may be eligible for a Foreign Income Tax Offset (FITO) to avoid double taxation.


When filing your tax return, you should report the capital gains in the “Foreign income” section. You'll need to include details of the capital gains and the foreign tax paid.


Capital gains will be added to your assessable income for the year. The FITO will help ensure you don’t pay tax twice on the same income.

kc6498(Enthusiast)Enthusiast
24 Sept 2024

Thanks @Matt_ATO for your response. A follow up question on that.


In India, Capital Gains on Equity Stock Trading is charged as flat 10% and this amount is not added in Assessable income.

For example :

I made Capital Gain of AUD 10,000 in India, So I paid AUD 1000 as Capital Gain (irrepective of which Tax bracket my Assessabl income falls in).

However when you say it is added in Assessable income in Australia and assuming I am in 37% bracket, then my Tax liability for Capital Gain from India will be 37% of AUD 10,000 - AUD 1000 (the tax offset ) = 3700 - 1000 = AUD 2700.

Is it correct understanding ?

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