I was in USA and purchased few US stocks in 2007 through US broker and ESPP stocks through my employer. I moved back to India in 2012. I sold those US stocks in 2014. I have submitted W8-BEN forms to US broker and statements show my Indian address. Do I need to pay federal taxes in USA or do I need to pay the report and pay taxes in India?
From an Indian Tax point of view, you can bring back all the assets acquired during the period you were NRI back to India tax free. Subject to a 7 years period. i.e. all the assets / funds / etc should be brought back to India within 7 years. It would still be treated as There are certain conditions / paperwork. Please consult a CA.