X a non-resident sells GDR's of reliance ltd. on march 20,2011 at $ 20 pes GDR to Y. another non-residence outside india X had acquired the GDR's Dec, 2004 at $13 per GDR. the gain is however not taxable in india..state the st. whether true/false?
ans:- true, bcoz u/s 47(iii) all condition are fulfgilled
pls tell me wat r the condition in dat clearly..
waiting for reply
Dear Sec 47(iii) refers to Transfer of capital assets by gift, and the transfer is not treated as transfer if the below cond. r fulfilled:
1) under gift;
2)under will; or
3)under an irrevocable transfer.
Here sec 47 (viia) will come in force which says that Transfer of foreign currency convertible bonds or GDR by a Non-residen to another Non-resident is not treated as "Transfer"
and under sec 47(viia) 4 conditions r given and d above que fulfills all the four conditions.
SKAA & Associates
New Delhi
CA Inter
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