New Delhi, Sept. 1 -- I am a resident of India and have purchased Bank of America's 4.45% NYSE-listed bond under the Liberalized Remittance Scheme (LRS). When I sell these bonds, how will they be taxed in India?

--Name withheld on request

As a resident of India, your worldwide income is chargeable to tax in India. This includes capital gains arising from the transfer of assets located overseas. For the purpose of computing capital gains, a capital asset is classified either as a short-term capital asset or a long-term capital asset. The gains from its transfer are accordingly taxed as short-term or long-term capital gains.

The Finance (No. 2) Act, 2024, has introduced specific changes with respect to the taxation of unlisted bonds. Wit...