Home List Manuals Income TaxInternational TaxationDetermination of Tax of Non Resident in Special Cases This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
Tax on income from units purchased in foreign currency or capital gains arising from their transfer - Section 115AB - International Taxation - Income TaxExtract Tax on income from units purchased in foreign currency or capital gains arising from their transfer - Section 115AB (1) Where the total income in case of Overseas Financial Organisation also known as Offshore Funds includes: - Nature of Income Rate of Tax (a) Income received in respect of units purchased in foreign currency 10% (b) Income by way of long-term capital gains arising from the transfer of units purchased in foreign currency 10% (c) On the balance income included in total income Normal rates (2) Where the gross total income by way of long-term capital gains arising from the transfer of units, then the second proviso to section 48 regarding indexation of cost of acquisition and improvement shall not be applicable for such LTCG. No deduction shall be allowed to the assessee under sections 28 to 44C. Notes:- Overseas Financial Organisation means any fund, institution, association or body, whether incorporated or not, established under the laws of a country outside India, which has entered into an arrangement for investment in India with any public sector bank or public financial institution or a mutual fund specified under section 10(23D). Such arrangement should be approved by the Securities and Exchange Board of India. Long term capital gains on units of equity oriented fund exceeding ₹1,00,000 shall be taxable @10% u/s 112A provided securities transaction tax has been paid on the sale of such units. Short Term Capital Gains on units of equity oriented fund are taxable @15% u/s 111A provided securities transaction tax has been paid on the sale of such units. No deduction under chapter VI-A is allowed. No exemption from filing of return of income. Carry forward and set off of loss is allowed but unabsorbed depreciation not allowed.
|