Concessional Rate Of Tax On Income From Certain Global Depository Receipts in case of NRI

[Capital Gain of an NRI could be Completely Exempt from Income Tax]

The Finance Act. 1999 had, with effect from the A.Y. 2000-2001, inserted a new Section 115ACA relating to tax on income from Global Depository Receipts (GDR) purchased in foreign currency or capital gains arising from transfer. Thus, it is provided that on the income by way of dividends or long-term capital gains in respect of GDRs of an Indian company purchased by a resident employee of such company in accordance with the notified employee’s stock option scheme, the income tax payable would be at the rate of 10%. This concessional rate of 10% would only apply to the income from investment in GDRs of a resident employee of a domestic company engaged in information technology software and information technology services. Of course, no other deduction in respect of such dividend income and long-term capital gains would be allowed in the case of such resident employee. The first and the second provisos to Section 48(1) would also not apply while computing the long-term capital gains in such a case. The scope of this concession has been widened by the Finance Act, 2001.
 
Capital Gain of an NRI could be Completely Exempt from Income Tax
1. Exemption of Long-Term Capital Gains regarding Residential House Property (Section 54)
2. Exemption of Long-Term Capital Gains from any Capital Asset On Investment In House Property (Section 54F)
3. Exemption of Long-Term Capital Gains On Investment In Bonds of NHAI & REC
4. Exemption to facilitate the Conversion Of Partnership Firm into a Company
5. Exemption from the Levy Of Capital Gains Tax to facilitate Conversion Of Sole Proprietary Concern Into A Company
6. Computation of Capital Gains In Real Estate Transactions
7. Other Important Exemptions Regarding Capital Gains Available to NRI
8. Cost Inflation Index And Computation Of Capital Gains in case of NRI
9. Reduction Of Tax Rate On Long-Term Capital Gains In Regard To Shares And Securities
10. Concessional Rate Of Tax On Income From Certain Global Depository Receipts
11.Tax Treatment Of Capital Gain On Sale Of Shares, Debentures, Etc. Received Under ESOP
12.Provisions Relating To Set-Off Of Long-Term Capital Loss And Carry Forward Thereof ModifiedSections 70 and 74
13. Exemption Of Long-Term Capital Gains On Securities And Lower Tax On Short-Term Capital Gains
14. Issue of Foreign Currency Exchangeable Bonds Scheme, 2008
15. Miscellaneous provisions’ regarding Capital Gains in case of NRI
 
 
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