KAMDHENU ISPAT LIMITED - Securities and Exchange Board of India

loss, such long –term capital loss cannot be set off against any income in the year in which the loss is incurred
or in a subsequent year.
It may be noted that if the above conditions are satisfied but an assets are short-term capital assets, then the
short-term capital gain is taxable at the rate of 10 percent ( plus surcharge plus education cess) by virtue of
section 111A.
d. Under Section 115 G of the Income Tax Act, a Non-Resident Indian is not obliged to file a Return of Income
under section 139(1) of the Income Tax Act, 1961, if his total income consists only of income from investments
and/or long term capital gains earned on transfer of such investments and tax has been deducted at source from
such income under the provision of Chapter XVII-B of the income Tax Act, 1961.
e. Under Section 115H of the Income Tax Act, where a Non- Resident Indian becomes assessable to tax in India,
in relation to any previous year, as resident in India in respect of his total income of any subsequent year, he may
furnish to the Assessing Officer a declaration in writing along with his Return of Income under Section 139 for the
assessment year for which he is so assessable, to the effect that the provisions of Chapter XII-A shall continue
to apply to him in relation to the investment income derived from any foreign exchange asset, being asset of the
nature referred to in sub clause (ii) to sub clause (v) of the sub clause(f) of Section 115C of the Income Tax Act,
in which case the provisions of Chapter Xii A shall continue to apply to him in relation to such income for that
assessment year and for every subsequent assessment year until the transfer or conversion (otherwise than by
transfer) into money of such assets.
f. Under Section 115(i) of the Income Tax Act, a Non-resident Indian has the option of not being governed by the
provisions of Chapter XII-A for any assessment year, whereby his total income for that assessment year (including
income arising out of investment in the Equity Shares of the Company) will be computed according to the
other provisions of the Act and will, therefore, be eligible to get concessions applicable to a Resident individual
and will be liable to tax accordingly.
g. In terms of section 10(34) of the Income tax Act, 1961, any income by way of dividends referred to in section 115
– O ( i.e. dividends declared, distributed or paid on or after 1 April, 2003 ) received on the shares of the company
is exempted from the tax.
h. Under the provisions of Section 48 of the Income Tax Act, 1961, Capital Gains arising to a Non-Resident from
the transfer of Capital Asset being shares in the company shall be computed by converting the cost of acquisition,
expenditure in connection with such transfer and full value of the consideration received or accruing as a
result of the transfer of the capital assets into the same foreign currency as was initially utilized in the purchase
of the shares and the capital gains computed in terms of such foreign currency shall be reconverted into Indian
currency, such that the aforesaid manner of computation of capital gains shall be applicable in respect of capital
gains accruing/arising from every reinvestment thereafter and sale of shares of the Company.
i. Under Section 54 EC of the Income Tax Act, 1961, and subject to the conditions and to the extent specified
therein, long term capital gains ( in cases not covered under section 10(38) of the Act,) arising on the transfer of
shares of the Company will be exempt from Capital gains tax if the capital gain are invested within a period of 6
months after the date of such transfer for a period of at least 3 years in bonds issued by
(a) National Bank for Agriculture and Rural development established under section 3 of the National bank for
Agriculture and Rural Development Act, 1981.
(b) National Highway Authority of India constituted under section 3 of the National A Highway Authority of India
Act, 1988.
(c) Rural Electrification Corporation Limited, the company formed and registered under the Companies Act,
1956.
(d) National Housing Bank established under section 3(1) of the National Housing Bank Act, 1987;and
(e) Small Industries Development Bank of India established under section 3(1) of the Small Industries Development
Bank of India Act, 1989.
j. Under Section 54 ED of the Income Tax Act, 1961 and subject to the conditions and to the extent specified
therein, long term capital gains (in cases not covered under section 10(38) of the Act, ) on the transfer of shares
of the company, as and when it is listed will be exempted from capital gains tax if the capital gain are invested in
shares of an Indian Company forming part of an eligible public issue. Within a period of 6 months after the date
of such transfer and held for a period of at least one year. Eligible public issue means issue of equity shares
which satisfies the following conditions, namely –
(a) the issue is made by a public company formed and registered in India.
(b) the Shares forming part of the issue are offered for subscription to the public.
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