NRI_Capital Gains

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sai CA Final (Querist)

16 July 2010 one of my client was NRI, at the time when he was resident in india(before leaving usa)he purchased shares in indian company (private ltd). Later after 10 years when he was an NRI sold the indian shares and he got capital gains of Rs.50 lacs and he wanted to purchase the house property with this money.
whether he will get exemption under section 54F if not weather sec-115F will applicable to him. please clarify this issue?

CA V. Mohanakrishnan

CA V. Mohanakrishnan (Expert)

20 July 2010 The transfer has happened and has capital gain when he was an NRI and Sec 115F would be applicable as the charge is based on the residential status at the time when income is earned or received

sai CA Final

sai CA Final (Querist)

21 July 2010 sec-115F specifying transfer of Foreign exchange asset and as per the Income tax Act foreign exchange asset means an asset which is acquired in convertible foreign exchange. But in my case shares were acquired in Indian rupees. Taking that is my position sec-115F will be applicable in this case. Further sec-54F giving exemption to Individuals. Individuals includes whom?

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