Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer
(1)
Where the total income of an assessee, being an individual, who is a resident and an employee of an Indian company engaged in specified knowledge based industry or service, or an employee of its subsidiary engaged in specified knowledge based industry or service (hereafter in this section referred to as the resident employee), includes income specified in column B of the Table below, the income-tax payable shall be the aggregate of income-tax specified in the column C thereof. Table Sl. Income Income-tax payable No. A B C 1. Dividend on Global Depository Receipts of an 10% Indian company engaged in specified knowledge based industry or service, issued as per such Employees’ Stock Option Scheme as the Central Government may, by notification, specify in this behalf and purchased by him in foreign currency. 2. Income from long-term capital gains arising 12.5% from the transfer of Global Depository Receipts referred to in serial number 1. 3. Total income as reduced by income referred to Income-tax in serial numbers 1 and 2. chargeable on such income
(2)
Where the gross total income of the resident employee— (a) consists only of income by way of dividends in respect of Global Depository Receipts referred to in sub-section (1)(Table: Sl. No. 1), no deduction shall be allowed to him under any other provision of this Act;
(b)
includes any income referred to in sub-section (1)(Table: Sl. No. 1) and (Table: Sl. No. 2),–– (i) the gross total income shall be reduced by such income; and (ii) the deduction under any provision of this Act shall be allowed as if the gross total income as so reduced were the gross total income of the assessee.