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What is Tax on income from units purchased in foreign currency or capital gains arising from their transfer? Section 115AB of Income Tax Act 1961

Tax on income from units purchased in foreign currency or capital gains arising from their transfer is defined under sections 115AB of Income Tax Act 1961. Provisions under this Section is :

Section 115AB of Income Tax Act "Tax on income from units purchased in foreign currency or capital gains arising from their transfer"

Section 115AB. (1) Where the total income of an assessee, being an overseas financial organisation (hereinafter referred to as Offshore Fund) includes-

(a) income received in respect of units purchased in foreign currency; or
(b) income by way of long-term capital gains arising from the transfer of units purchased in foreign currency,
the income-tax payable shall be the aggregate of-
 

 

 (i) the amount of income-tax calculated on the income in respect of units referred to in clause (a), if any, included in the total income, at the rate of ten per cent;
(ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income, at the rate of ten per cent; and
(iii) the amount of income-tax with which the Offshore Fund would have been chargeable had its total income been reduced by the amount of income referred to in clause (a) and clause (b).

(2) Where the gross total income of the Offshore Fund,-
(a) consists only of income from units or income by way of long-term capital gains arising from the transfer of units, or both, no deduction shall be allowed to the assessee under sections 28 to 44C or clause (i) or clause (iii) of section 57 or under Chapter VI-A and nothing contained in the provisions of the second proviso to section 48 shall apply to income referred to in clause (b) of sub-section (1);
(b) includes any income referred to in clause (a), the gross total income shall be reduced by the amount of such income and the deduction under Chapter VI-A shall be allowed as if the gross total income as so reduced were the gross total income of the assessee.
Explanation.-For the purposes of this section,-
(a) "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 clause (23D) of section 10 and such arrangement is approved by the Securities and Exchange Board of India, established under the Securities and Exchange Board of India Act, 1992 (15 of 1992), for this purpose;
(b) "unit" means unit of a mutual fund specified under clause (23D) of section 10 or of the Unit Trust of India;
(c) "foreign currency" shall have the meaning as in 72[the Foreign Exchange Management Act, 1999 (42 of 1999)];
(d) "public sector bank" shall have the meaning assigned to it in clause (23D) of section 10;
(e) "public financial institution" shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956);
(f) "Unit Trust of India" means the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963).

Income Tax Act 1961

What is Tax in the case of block assessment of search cases? What is the meaning of Chapter not to apply if the assessee so chooses? Section 113 and 115 i of Income Tax Act 1961

What is Tax on distributed profits of domestic companies? Section 115 O of Income Tax Act 1961

What is Tax on dividends, royalty and technical service fees in the case of foreign companies? Section 115A of Income Tax Act 1961

What is Tax on income from units purchased in foreign currency or capital gains arising from their transfer? Section 115AB of Income Tax Act 1961

What is Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer? Section 115AC of Income Tax Act 1961

What is Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer? Section 115ACA of Income Tax Act 1961

What is Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer? Section 115AD of Income Tax Act 1961

What is Tax on profits and gains of life insurance business? What is Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever? Section 115B and 115BB of Income Tax Act 1961

What is Tax on non-resident sportsmen or sports associations? What is Tax on income from units of an open-ended equity oriented fund of the Unit Trust of India or of Mutual Funds? Section 115BBA and 115BBB of Income Tax Act 1961

What is Tax on non-resident sportsmen or sports associations? What is Tax on income from units of an open-ended equity oriented fund of the Unit Trust of India or of Mutual Funds? Section 115BBA and 115BBB of Income Tax Act 1961

What is the meaning of Anonymous donations to be taxed in certain cases? What is Tax on certain dividends received from foreign companies? Section 115BBC and 115BBD of Income Tax Act 1961

What is Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D? Section 115BBE of Income Tax Act 1961

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