sejal architectural glass limited - Securities and Exchange Board of ...

8. In case of a shareholder being an individual or a Hindu Undivided Family, in accordance
with and subject to the conditions and to the extent specified in Section 54F of the Act,
the shareholder would be entitled to exemption from long term capital gains on the sale of
shares in the Company (not covered by sections 10 (36) and 10 (38)), upon investment of
net consideration in purchase /construction of a residential house. If part of net
consideration is invested within the prescribed period in a residential house, then such
gains would not be chargeable to tax on a proportionate basis. Further, if the residential
house in which the investment has been made is transferred within a period of three years
from the date of its purchase or construction, the amount of capital gains shall be charged
to tax as long-term capital gains in the year in which such residential house is transferred.
Benefits available to Non-Resident Indian Shareholders
1. Under Section 10(34) of the Act, dividend (whether interim or final) declared, distributed
or paid by the Company on or after 1 st April 2004 is fully exempt from tax in the hands of
the shareholders of the Company.
2. In the case of shareholder being a non-resident Indian and subscribing to shares in
convertible foreign exchange, in accordance with and subject to the conditions and to the
extent specified in Section 115D read with Section 115E of the Act, long term capital gains
arising from the transfer of an Indian company’s shares (not covered by sections 10(36) and
10(38)), will be subject to tax at the rate of 10% as increased by a surcharge and education
cess at an appropriate rate on the tax so computed, without any indexation benefit but
with protection against foreign exchange fluctuation.
3. In case of a shareholder being a non-resident Indian, and subscribing to the share in
convertible foreign exchange in accordance with and subject to the conditions and to the
extent specified in Section 115F of the Act, the non resident Indian shareholder would be
entitled to exemption from long term capital gains (not covered by sections 10(36) and
10(38)) on the transfer of shares in the Company upon investment of net consideration in
modes as specified in sub-section (1) of Section 115F.
4. In accordance with the provisions of Section 115G of the Act, Non Resident Indians are not
obliged to file a return of income under Section 139(1) of the Act, if their only source of
income is income from investments or long term capital gains earned on transfer of such
investments or both, provided tax has been deducted at source from such income as per
the provisions of Chapter XVII-B of the Act.
5. In accordance with the provisions of Section 115H of the Act, when a Non Resident Indian
become assessable as a resident in India, he may furnish a declaration in writing to the
Assessing Officer along with his return of income for that year under Section 139 of the Act
to the effect that the provisions of Chapter XII-A shall continue to apply to him in relation
to such investment income derived from the specified assets for that year and subsequent
assessment years until such assets are converted into money.
6. As per the provisions of section 115 I of the Act, a Non-Resident Indian may elect not to be
governed by the provisions of Chapter XII-A for any assessment year by furnishing his return
of income for that year under Section 139 of the Act, declaring therein that the provisions
of Chapter XII-A shall not apply to him for that assessment year and accordingly his total
income for that assessment year will be computed in accordance with the other provisions
of the Act.
7. In accordance with and subject to the conditions and to the extent specified in Section 112
of the Act, tax on long term capital gains arising on sale on listed securities or units not
covered by sections 10(36) and 10(38) will be, at the option of the concerned shareholder,
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