sejal architectural glass limited - Securities and Exchange Board of ...
sejal architectural glass limited - Securities and Exchange Board of ...
sejal architectural glass limited - Securities and Exchange Board of ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Benefits available to other Non-Residents<br />
1. Under Section 10(34) <strong>of</strong> the Act, dividend (whether interim or final) declared, distributed<br />
or paid by the Company on or after 1st April 2004 is completely exempt from tax in the<br />
h<strong>and</strong>s <strong>of</strong> the shareholders <strong>of</strong> the Company.<br />
2. In accordance with <strong>and</strong> subject to the conditions <strong>and</strong> to the extent specified in Section 112<br />
<strong>of</strong> the Act, tax on long term capital gains arising on sale on listed securities or units before<br />
1 st October 2004 will be, at the option <strong>of</strong> the concerned shareholder, 10% <strong>of</strong> capital gains<br />
(computed without indexation benefits) or 20% <strong>of</strong> capital gains (computed with indexation<br />
benefits) as increased by a surcharge <strong>and</strong> education cess at an appropriate rate on the tax<br />
so computed in either case.<br />
3. As per the provisions <strong>of</strong> section 10(38), long term capital gain arising from the sale <strong>of</strong><br />
Equity Shares in any company through a recognized stock exchange or from the sale <strong>of</strong><br />
units <strong>of</strong> an equity oriented mutual fund shall be exempt from Income Tax if such sale takes<br />
place after 1 st <strong>of</strong> October 2004 <strong>and</strong> such sale is subject to <strong>Securities</strong> Transaction tax.<br />
4. As per the provisions <strong>of</strong> section 111A, Short Term capital gains arising from the transfer <strong>of</strong><br />
Equity Shares in any company through a recognized stock exchange or from the sale <strong>of</strong><br />
units <strong>of</strong> equity oriented mutual fund shall be subject to tax @ 10% provided such a<br />
transaction is entered into after the 1 st day <strong>of</strong> October, 2004 <strong>and</strong> the transaction is subject<br />
to <strong>Securities</strong> Transaction Tax.<br />
5. As per the provisions <strong>of</strong> section 88E, where the business income <strong>of</strong> an assessee includes<br />
pr<strong>of</strong>its <strong>and</strong> gains from sale <strong>of</strong> taxable securities, a rebate shall be allowed from the amount<br />
<strong>of</strong> income tax equal to the <strong>Securities</strong> transaction tax paid on such transactions. However<br />
the amount <strong>of</strong> rebate shall be <strong>limited</strong> to the amount arrived at by applying the average<br />
rate <strong>of</strong> income tax on such business income as provided in the said section.<br />
6. In accordance with <strong>and</strong> subject to the conditions <strong>and</strong> to the extent specified in Section<br />
54EC <strong>of</strong> the Act, the shareholders would be entitled to exemption from tax on gains arising<br />
on transfer <strong>of</strong> their shares in the Company (not covered by sections 10(36) <strong>and</strong> 10(38)) if<br />
such capital gain is invested in any <strong>of</strong> the long term specified asset is transferred or<br />
converted into money at any time within a period <strong>of</strong> three years from the date <strong>of</strong> its<br />
acquisition, the amount <strong>of</strong> capital gains exempted earlier would become chargeable to tax<br />
as long term capital gains in the year in which the long-term specified asset is transferred<br />
or converted into money.<br />
7. In accordance with <strong>and</strong> subject to the conditions <strong>and</strong> to the extent specified in Section<br />
54ED <strong>of</strong> the Act, the shareholders would be entitled to exemption from long term capital<br />
gains (not covered by sections 10(36) <strong>and</strong> 10(38)) on transfer <strong>of</strong> their assets being listed<br />
securities or units to the extent such capital gain is invested in acquiring Equity Shares<br />
forming part <strong>of</strong> an ‘eligible issue <strong>of</strong> share capital’ in the manner prescribed in the said<br />
section.<br />
8. In case <strong>of</strong> a shareholder being an individual or a Hindu Undivided Family, in accordance<br />
with <strong>and</strong> subject to the conditions <strong>and</strong> to the extent specified in Section 54F <strong>of</strong> the Act,<br />
the shareholder would be entitled to exemption from long term capital gains (not covered<br />
by sections 10(36) <strong>and</strong> 10(38)) on the sale <strong>of</strong> shares in the Company upon investment <strong>of</strong> net<br />
consideration in purchase/construction <strong>of</strong> a residential house. If part <strong>of</strong> net consideration<br />
is invested within the prescribed period in a residential house, then such gains would not<br />
be chargeable to tax on a proportionate basis. Further, if the residential house in which the<br />
investment has been made is transferred within a period <strong>of</strong> three years from the date <strong>of</strong> its<br />
purchase or construction, the amount <strong>of</strong> capital gains tax exempted earlier would become<br />
75