APR Constructions Limited - Saffron Capital

If only a part of the capital gain is so invested, the exemption would be limited to the amount of the capital gain
so invested.
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.
11. In accordance with section 54F, long-term capital gains arising on the transfer of the shares of the company held
by an individual 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.
C) Foreign Institutional Investors (FIIs)
• 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 in the hands of FIIs.
• In accordance with section 115AD, FIIs will be taxed at 10% (plus applicable surcharge and „education cess and
secondary & higher education cess‟) on long-term capital gains, and at 15% (plus applicable surcharge and
„education cess and secondary & higher education cess‟) on short-term capital gains arising on the sale of the
shares of the company which is subject to securities transaction tax.
• As per section 90, the provision of Income Tax Act would prevail over the provisions of the tax treaty to the
extent they are more beneficial to the Non-Resident.
• 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.
• Under section 196D(2) of the Act, no deduction of tax at source will be made in respect of income by way of
capital gain arising from the transfer of securities referred to in section 115AD of the Act.
• In accordance with section 54EC, long-term capital gains arising on transfer of the shares of the company on
which securities transaction tax is not payable, shall be exempt from tax if the gains are invested within six
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