Yes — and here’s how it works.

Many NRIs wonder if they can still claim the foreign currency capital gains benefit under Section 48 when:

1. Shares Are Gifted or Inherited

Absolutely — if the original purchase was made using foreign exchange.

• The law focuses on the source of funds, not who currently owns the asset.
• If your parent or relative used foreign remittance to buy the shares, you inherit both the asset and the tax benefit.

Bottom line: The benefit follows the asset — not the person.

2. Gains Are Reinvested

If you reinvest capital gains from an earlier foreign currency investment, you retain the benefit for the new investment too.

The law is clear:

“…this computation method shall apply to every reinvestment thereafter.”

Example:

• Invest $10,000 in 2015
• Sell in 2020, reinvest proceeds
• Sell again in 2025
• You can still compute gains in foreign currency — as long as the reinvested capital came from that original remittance.

Key Insight:

Gifted, inherited, or reinvested — if the trail of foreign exchange remains intact, so does your tax advantage.

Need help tracing or structuring your capital gains?