Tax on income from units purchased in foreign currency or capital gains arising from their transfer - Section 115AB - International Taxation - Income Tax

Tax on income from units purchased in foreign currency or capital gains arising from their transfer - Section 115AB (1) Where the total income in case of Overseas Financial Organisation also known as Offshore Funds includes: - Nature of Income Rate of Tax (a) Income received in respect of units purchased in foreign currency 10% (b) Income by way of long-term capital gains arising from the transfer of units purchased in foreign currency 10% [ Upto 22.07.2024 ] 12.5% [ From 23.07.2024 ] [ Substituted vide Finance (No. 2) Act, 2024 ] (c) On the balance income included in total income Normal rates (2) Where the gross total income by way of long-term capital gains arising from the transfer of units, then the second proviso to section 48 regarding indexation of cost of acquisition and improvement shall not be applicable for such LTCG. No deduction shall be allowed to the assessee under sections 28 to 44C. Notes:- Overseas Financial Organisation means any fund, institution, association or body, whether incorporated or not, established under the laws of a country outside India, which has entered into an arrangement for investment in India with any public sector bank or public financial institution or a mutual fund specified under section 10(23D). Such arrangement should be approved by the Securities and Exchange Board of India. Long term capital gains on units of equity oriented fund Upto 31.03.2024 is exceeding ₹ 1,00,000/- shall be taxable @10% u/s 112A After 01.04.2024 is excedding ₹ 1,25,000/- Shall be taxable @10% upto 22.07.2024 thereafter @12.5%. provided securities transaction tax has been paid on the sale of such units. Short Term Capital Gains on units of equity oriented fund Upto 22.07.2024 taxable @15% After 23.07.2024 @20% u/s 111A provided securities transaction tax has been paid on the sale of such units. No deduction under chapter VI-A is allowed. No exemption from filing of return of income. Carry forward and set off of loss is allowed but unabsorbed depreciation not allowed. Such income liable to deduct TDS on Long Term Capital Gains (LTCG) from units referred to in section 115AB [ Section 196B ] (For more details refer this chapter )