Meenu (student) (175 Points)
16 May 2011X 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
Amit Surana
(Student CA/CS-Professional)
(268 Points)
Replied 16 May 2011
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.
CAclubindia
