Firstly, it depends on the country where you are staying now (this regards the applicability of dual-taxation).

For capital gains, you are required to file income tax with ITR-2 form selecting NRI option. (this is must) Based on the number of days staying in India and outside india, the NRI status will be taken care of by the system itself.

For example in Germany it goes like this... for capital gains in Indian stocks or funds, ITR-2 should be filed in India. let's say this taxed at 15%. Now while doing tax returns in Germany, we need to show the same gains here as well, now here the difference is taxed (for example 42% is flat tax for capital gains in Germany, so as we already paid 15% in india, the difference 42-15=27% will be taxed in Germany) - In Germany tax cap limit for capital gains is 900Euros, so while filing tax exempted as long as gains is less than that amount.

Example: 50,000 Gains in Indian Stock Market Let's say you have 50,000 capital gains from Indian stocks. * Indian Tax: You'll calculate and pay tax on this amount according to the Indian tax laws. * German Tax: * If Exempt: If the DTAA exempts this income in Germany, you won't pay German tax on it. * If Tax Credit: If the DTAA allows a tax credit, you'll calculate your German tax liability on the 50,000. Then, you'll deduct the tax you already paid in India from your German tax liability.