Capital gains on transfer of foreign exchange assets not to be charged in certain cases
(1)
Where, in case of an assessee, being a non-resident Indian,–– on (a) any long-term capital gains arises from the transfer of a exchange asset (herein referred as original asset); and
(ii)
if the cost of the new asset is less than the net consideration in of the original asset, then the capital gain computed by the following shall not be charged under section 67section 67:–– A=B×C D Where, A = the capital gains not to be charges being computed; B = whole of the capital gain; C = cost of acquisition of the new asset; D = net consideration in respect of the original asset.
(2)
For the In sub-section (1),––
(a)
“cost”, in relation to any new asset, being a deposit referred section 212section 212(e)(iii)(v), means the amount of such deposit;
(b)
“net consideration” in relation to the transfer of the original means the full value of the consideration received or accruing as a of the transfer of such asset as reduced by any expenditure incurred and exclusively in connection with such transfer.
(3)
Where the new asset is transferred or converted (otherwise than transfer) into money, within three years from date of its acquisition, the gain arising from transfer of original asset not so charged under section 67section 67 be deemed to be income by way of capital gains of the tax year in which transfer or conversion takes place relating to capital assets other than short-term capital assets of the tax year in which the new asset is transferred or converted (otherwise than by transfer) into money.