Circular No. 3 of W.T. of 1957, dated September 28, 1957-Location of assets-Modifications regarding - Income Tax - 392/1984

Circular No. 3 of W.T. of 1957, dated September 28, 1957-Location of assets-Modifications regarding Circular No. 392 Dated 24/8/1984 Attention is invited to Board's Circular No. 3 of the W.T. of 1957, dated September 28, 1957, on the subject of location of assets. 2. According to para 2(d) of the aforesaid Circular, the situs of debts is in India if they are contracted to be repaid in India. If the contracts is silent about the place of repayment, the debts are located in India if the debtor is residing in India. 3. The Board are advised that the general principle of law is that the debts are situate where the debtor resides and a stipulation that the payment should be made in a country where the debtor is not residing does not affect the general rule. In view of this position, para 2(d) of the aforesaid Circular may please be substituted by the following: "2(d): Debts, secured or unsecured (other than those dealt with below) are located in India if they are contracted to be repaid in India or if the debtor is residing in India." (Sd.) S.C. Tiwari, Secretary, Central Board of Direct Taxes.