Remittance of sale consideration of shares referred in Sec.115AC. - Income Tax - 5159/1993

INSTRUCTION NO. 5159/1993 Dated: October 5, 1993 Section(s) Referred: 115AC Statute: Income - Tax Act, 1961 Section 115AC of the I.T. Act provides concessional rates of tax on long-term capital gains arising from the transfer of shares purchased in foreign currency. The rate prescribed therein is 10% on the income by way of long-term capital gains. If the capital gains are of short-term in nature, there is no concessional tax treatment. 2. Reports have been received that remittance of sale consideration of shares referred in section 115AC have been allowed in certain cases by assessing officers without deduction of income-tax on capital gains. The claims of assessees that there was actually capital losses on these transactions has been accepted. It is felt that such cases need deeper scrutiny. 3. The assessing officers may be requested to exercise due care while issuing No Objection Certificate at the time of remittance of the sale consideration of such shares. 4. Please acknowledge. F.No. 133/124/93-TPL