APR Constructions Limited - Saffron Capital

If the specified asset is transferred or converted into money at any time within a period of three years from the
date of acquisition, the amount of capital gains on which tax was not charged earlier shall be deemed to be
income chargeable under the head “Capital Gains” of the year in which the specified asset is transferred.
7. In accordance with section 54F, long-term capital gains arising on the transfer of the shares of the company held
by an individual or Hindu Undivided Family on which securities transaction tax is not payable, shall be exempt
from capital gains tax, if the net consideration is utilised, within a period of one year before, or two years after
the date of transfer, in the purchase of a new residential house, or for construction of a residential house within
three years. Such benefit will not be available, if the individual or Hindu Undivided Family-
- owns more than one residential house, other than the new residential house, on the date of transfer of the
shares; or
- purchases another residential house, other than the new residential house, within a period of one year after
the date of transfer of the shares; or
- constructs another residential house, other than the new residential house, within a period of three years after
the date of transfer of the shares; and
- the income from such residential house, other than the one residential house owned on the date of transfer of
the original asset, is chargeable under the head “Income from house property”.
If only a part of the net consideration is so invested, so much of the capital gains as bears to the whole of the capital
gain the same proportion as the cost of the new residential house bears to the net consideration shall be exempt.
If the new residential house is transferred within a period of three years from the date of purchase or construction, the
amount of capital gains on which tax was not charged earlier, shall be deemed to be income chargeable under the
head “Capital Gains” of the year in which the residential house is transferred.
B. 1. Non-Residents
1. In accordance with section 10(34), dividend income declared, distributed or paid by the company (referred to in
section 115-O) will be exempt from tax.
2. In accordance with section 10(38), any income arising from the transfer of a long term capital asset being an
equity share in a company is not includible in the total income, if the transaction is subject to securities
transaction tax.
3. In accordance with section 48, capital gains arising out of transfer of capital assets being shares in the company
acquired in foreign currency shall be computed by converting the cost of acquisition, expenditure in connection
with such transfer and the full value of the consideration received or accruing as a result of the transfer into the
same foreign currency as was initially utilised in the purchase of the shares and the capital gains computed in
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 or debentures of an Indian company including the Company.
4. As per the provisions of section 71, if there is a loss under the head “Capital Gains”, it cannot be set-off with the
income under any other head. Section 74 provides that the short term capital loss can be set-off against both short
term and long term capital gains. But long term capital loss cannot be set-off against short term capital gains. The
unabsorbed short term and long term capital loss can be carried forward for next eight assessment years and can
be set off against the respective capital gains in subsequent years.
5. As per the provisions of section 90, the Non Resident shareholder has an option to be governed by the provisions
of the Tax Treaty, if they are more beneficial than the domestic law, wherever India has entered into Double
Taxation Avoidance Agreement with the relevant country for avoidance of double taxation of income.
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