An NRI, as permitted under FEMA may invest in the immovable property or in shares, securities or units of Mutual Funds, etc. Different provisions relating to the complete exemption from income tax particularly the one under Section 54EC applicable to long-term capital gains upto Rs. 50 lakh only in respect of all types of assets would be of special benefit for the NRJs in particular. We have not discussed the provisions regarding the computation of capital gains in the case of slump sales or on the shifting of industrial undertakings or compulsory acquisition of land and building, etc. NRIs would be able to save substantial money in respect of income tax on capital gains. |
