Section 115AB Tax on income from units purchased in foreign currency or capital gains arising from their transfer.

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The Tax Publishers [1][115AB. Tax on income from units purchased in foreign currency or capital gains arising from their transfer. Where the total income of an assessee, being an overseas financial organisation (hereinafter referred to as Offshore Fund) includes (a) income received in respect of units purchased in foreign currency; or (b) income by way of long-term capital gains arising from the transfer of units purchased in foreign currency, the income-tax payable shall be the aggregate of (i) the amount of income-tax calculated on the income in respect of units referred to in clause (a), if any, included in the total income, at the rate of ten per cent; (ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income, at the rate of ten per cent; and (iii) the amount of income-tax with which the Offshore Fund would have been chargeable had its total income been reduced by the amount of income referred to in clause (a) and clause (b). (2) Where the gross total income of the Offshore Fund, (a) consists only of income from units or income by way of long-term capital gains arising from the transfer of units, or both, no deduction shall be allowed to the assessee under Sections 28 to 44C [2][* * * *] or clause (i) or clause (iii) of Section 57 or under Chapter VI-A [3][and nothing contained in the provisions of the second proviso to Section 48 shall apply to income referred to in clause (b) of sub-section (1)]; SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

[1][115AB. Tax on income from units purchased in foreign currency or capital gains arising from their transfer.

Where the total income of an assessee, being an overseas financial organisation (hereinafter referred to as Offshore Fund) includes

(a) income received in respect of units purchased in foreign currency; or

(b) income by way of long-term capital gains arising from the transfer of units purchased in foreign currency,

the income-tax payable shall be the aggregate of

(i) the amount of income-tax calculated on the income in respect of units referred to in clause (a), if any, included in the total income, at the rate of ten per cent;

(ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income, at the rate of ten per cent; and

(iii) the amount of income-tax with which the Offshore Fund would have been chargeable had its total income been reduced by the amount of income referred to in clause (a) and clause (b).

(2) Where the gross total income of the Offshore Fund,

(a) consists only of income from units or income by way of long-term capital gains arising from the transfer of units, or both, no deduction shall be allowed to the assessee under Sections 28 to 44C [2][* * * *] or clause (i) or clause (iii) of Section 57 or under Chapter VI-A [3][and nothing contained in the provisions of the second proviso to Section 48 shall apply to income referred to in clause (b) of sub-section (1)];