If an indian citizen residing in USA has shares and his income is less than a lakh an year.he need to pay tax?

If he need to pay tax...how should he pay? Also if the income on share is more than one lakh what is the case? what is long term capital gain ?how does it apply in this case?

I mean to say the NRI has the indian shares in indian demat account.......if he has other income like rents etc...how is that in that case and total income exceeds one lakh

If you are an NRI,
For current financial year 2007-08, you need to pay tax only if your taxable income exceeds:
1) If you are men Rs.1,10,000,
2) women Rs. 1.45 lakhs
3) Senior citizen >65 years Rs.1,95,000

In any case if the taxable income is less than 1 lakh (as you said) it is totally tax free.

Long term capital gains arising from transfer of equity shares in a company and/or equity oriented schemes of Mutual Funds, which are subject to securities transaction tax are totally tax free and it will not be added to your income at all.

Short term capital gains are taxed @10% flat rate. (If you have paid security transaction tax on shares while selling them). If your income including short term capital gains dose not exceed the taxable limit, then it is totally tax free.

In case if your income exceeds the taxable limit you have to file your returns and pay tax.

Please refer the web site given below to have more faith.

http://www.nritaxservices.com/tax_cptl.h...

only on the shares he gets the income as 1 lakh... and how about his other incomes..

If he resides in US he will becomes NRI no need to pay tax

Tax is payable on STCG.

Agreed with N.J Reddy

Depends on how you are calling yourself a NRI. In case you are not resident in INdia for the last 180 days and you fall within the category as mentioned under the income tax act, can you call yourself a NRI.
Firstly the income that you earn abroad, if it is not from Indian operations,then no need to pay taxes.
Secondly the capital gains accrued from your investment in shares are divisible in two sections.If it is a long term capital (1 yr or above) gain then no tax is payable.In case of short term capital gain (below 1 yr.) 10% tax is payable.But if the total income you earned in one financial year is less than 1.10 Lacs, then men are exempted from tax.
Hope I have answered your question.

As a person is residing in USA, he will be non-resident... he will be taxable in India only for the income arising out of properties in India...

Now as we all know dividend income from shares in Indian company is exempt... Now as u have asked u about Long term gain, let me make it clear that long term capital arises in case of transfer after 12 months of acquisition... and it is totally exempt from tax if shares were listed shares...

Further u have also asked for rent income.. u have not mentioned for which property u r getting rent but if it is a property which is situated in India, then and then only u will be liable to tax for it in India... otherwise enjoy...

And as regards tax exemption limit i think answerers before me have made it very clear that upto 1,10,000 there is no tax...

Good day :-)