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Sec 48 proviso 1

Anitha (Articles) (121 Points)

21 June 2017

Hi Everybody,

Kindly clarify my query with respect to sec 48 proviso 1.

Proviso is applicable to non resident who complied with conditions specified therein. My query is related to words below in the bare act.

"so, however, that the aforesaid manner of computation of capital gains shall be applicable in respect of capital gains accruing or arising from every reinvestment thereafter in, and sale of, shares in, or debentures of, an Indian company"

Is this line meaning only if NRI re-invest, this proviso will become applicable

Thanks & Regards,

Anitha. S

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4 Replies

(Guest)

It means that the calculation process of converting into foreign currency and reconversion of capital gains, apply only in case of non residents.

(Guest)

It means that the calculation process of converting into foreign currency and reconversion of capital gains from such investment, apply only in case of non residents.

Anitha (Articles) (121 Points)
Replied 22 June 2017

My doubt here is , Assume MR . A being Non resident invest in shares of indian company using USD repatriated. On sale of such shares, whether 48 proviso 1 is applicable, if no reinvestment made?

It is clear that on reinvestment of such sale proceed, sec 48 proviso 1 will apply.