NRI tax rules: What happens to losses on foreign shares?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Non-resident Indians cannot set off capital losses from UK shares against gains made on Indian stocks for tax returns.
- ✓Experts said, "Such UK capital loss cannot be set off against capital gains arising from the sale of Indian shares." Meanwhile, NRIs can use the FAST-DS 2026 scheme for undisclosed assets.
Story at a Glance
- Category
- MARKET
- Reported By
- Livemint
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
I am an NRI living in the UK and left India in 2017 for employment. I regularly invest in the UK and India. Recently, I sold some UK and Indian stocks. I incurred a loss on the sale of UK stocks, whereas I earned gains on thesale of Indian stocks. Can I set off the UK capital loss against gains from Indian shares in my India tax return?
– Name withheld on request
Assuming you are a Non-Resident (NR) of India for FY 2026-27 under the Income-tax Act, 2025, only income which is received or deemed to be received in India, or accrues or arises or is deemed to accrue or arise in India, would generally form part of your total income in India.
Accordingly, a capital gain or capital loss arising from the sale of UK shares by an NR would not be taxable in India. Since such capital loss does not form part of your total income in India, the question of adjusting such loss against capital gains arising in India would not arise.
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