Objectives & Agenda : To analyse and interpret the provisions of the Income-tax Act relating to computation and chargeability of Capital Gains. In this Webinar we shall look at various types of transfers which are exempted from capital gains, cost of acquisition in certain specified cases, capital gains on specified assets and finally, capital gains in case of non-residents. Also, the Webinar will touch upon relevant Judicial Precedents.

1. Understanding Income-tax –
Capital Gains – Part III
CA. Divakar Vijayasarathy

2. Credits and Acknowledgments
V Thirumal
CA Jugal Gala

3. Legends used in the Presentation
AOP Association of Person
BOI Body of Individuals
CII Cost Inflation Index
ESOP Employees Stock Option Plan
FII Foreign Institutional Investors
GDR Global Depository Receipts
HUF Hindu Undivided Family
JDA Joint Development Agreement
PY Previous Year
RBI Reserve Bank of India
RDB Rupee Denominated Bond
REIT Real Estate Investment Trust
SEBI Securities Exchange Board of India
TT Telegraphic Transfer

4. Presentation Schema
Exempted Transfers Family Transactions
Holding and
Subsidiary
Transactions
Transfers in a
Scheme of
Amalgamation
Transfers in a
Scheme of
Demerger
Transfers in the
Event of Succession
or Conversion
Shares and
Securities
Transactions
Miscellaneous
Transactions
Withdrawal of
Exemptions
Cost of Acquisition
in Certain Cases
Capital Gains in
Case of Specified
Assets

5. Secs Covered
Sec Description
Exempted Transfers
47
Transactions not regarded as transfer
o Family Transactions
o Holding and Subsidiary Transactions
o Transfers in a scheme of Amalgamation
o Transfers in a scheme of Demerger
o Transfers in the Event of Succession or Conversion
o Shares and Securities Transactions
o Miscellaneous Transactions
47A Withdrawal of Exemptions
Cost of Acquisition in certain cases
49 Cost with reference to certain modes of acquisition
Capital Gains in case of Specified Assets
112A Capital Gains for Specified Assets

6. Exempted Transfers

7. Family Transactions
Sec Nature of Transaction Remarks
47(i) Distribution of capital
assets on partition of HUF
When capital assets are distributed to members on total or partial partition of HUF, it shall not be
regarded as transfer and hence, no capital gains shall be charged in the hands of the HUF
Rationale - Partition is a process in which a joint enjoyment of the property is transformed into
enjoyment in severalty. Each of the members has an antecedent title and therefore; no
conveyance is involved in the process as confirmation of new title is not necessary
47(iii) Transfer of capital asset
under a gift, will or
irrevocable trust
Where transfer of capital asset takes place by Gift, Will or Irrevocable Trust, it shall be exempt
from capital gains tax
Rationale - Provisions for taxation of gifts are covered under Sec 56(2)(x) wherein the recipient of
gifts is charged to taxation. Therefore, if there is incidence of tax at the time of transfer in the
hands of transferor as well, the same would lead to double taxation.
Exception - Transfer is made by way of gift or irrevocable trust (not “will”) of shares, debentures or
warrants allotted by company under ESOP or any Scheme of the company to employees, the said
transfer shall not be exempt

8. Holding and Subsidiary Transactions
Transfer of capital asset by holding company to its subsidiary company or vice versa - Sec 47(iv) and 47(v)
47(iv) • Transfer of capital asset by holding company to its 100% Indian subsidiary company
• While calculating the % of shareholding in subsidiary company, shares held by the holding
company along with its nominees shall be taken into consideration
47(v) • Transfer of capital asset by subsidiary company to its 100% Indian holding company
• The entire shareholding has to be fully held by holding company in order to claim the exemption
These transfers shall not be charged to tax
Exception Where capital asset is transferred as stock in trade, the exemption of capital gains shall not be
allowed to transferor
• Transferee company should not convert or treat the transferred capital asset as stock-in-trade for the
period of 8 years from the date of transfer
• The holding company or its nominee should not cease to hold the entire shareholding of the subsidiary
company for the period of 8 years from the date of transfer
In case the above conditions are violated, the exemption allowed at the time of erstwhile transfer shall revoke
and the exempt amount shall be deemed to be capital gains in the hands of transferor in the year of violation
Withdrawal of Exemption - 47A(1)

9. Transfers in a Scheme of Amalgamation
Sec Nature of transaction Conditions to be fulfilled
47(vi) Transfer of capital asset by an amalgamating
company to amalgamated company
Amalgamated company should be an Indian Company
47(via) Transfer of shares of an Indian company by
amalgamating foreign company to amalgamated
foreign company
 At least 25% of the shareholders of the amalgamating foreign
company continue to remain shareholders of the amalgamated
foreign company; and
 Such transfer is not liable to capital gains tax in the country of
incorporation of the amalgamating company
47(viaa) Transfer of a capital asset by a banking company to
a banking institution pursuant to an amalgamation
The scheme of amalgamation is sanctioned by the Central
Government under Banking Regulation Act, 1949
47(viab) Transfer of shares of a foreign company, which
derives, directly or indirectly, its value substantially
from shares of an Indian company, by
amalgamating foreign company to amalgamated
foreign company
 At least 25% of the shareholders of the amalgamating foreign
company continue to remain shareholders of the amalgamated
foreign company; and
 Such transfer is not liable to capital gains tax in the country of
incorporation of the amalgamating company
47(vii) Transfer of shares held in amalgamating company
by a shareholder
 Consideration for the transfer shall be shares allotted in the
amalgamated company except for cases where shareholder itself
is the amalgamated company; and
 Amalgamated company is an Indian Company

10. Relevant Definitions Sec 2(1B) – Definition of Amalgamation
Merger of 1 or more companies with another company or the merger of 2 or more companies to form 1 company in such a manner that:
All the property and liabilities of the amalgamating company or companies immediately before the
amalgamation becomes the property and liabilities of the amalgamated company
Shareholders holding not less than 3/4th in value of the shares in the amalgamating company or companies
(other than shares already held therein immediately before the amalgamation by the amalgamated company
or its subsidiary or by their nominee) become shareholders of the amalgamated company
otherwise than normal purchase of property or distribution of property on account of winding-up.
Banking company Any company which transacts the business of banking in India and "banking" means the accepting, for the purpose
of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal
by cheque, draft, order or otherwise
Banking institution Any banking company and includes the State Bank of India or a subsidiary bank or a corresponding new bank
If on the specified date, the value of shares in Indian company-
• exceeds Rs 10 crores and
• the shareholding of foreign company represents at least
50% of the value of total shareholding of Indian company
Deriving value substantially
from shares in Indian company

11. Transfers in a Scheme of Demerger
Sec Nature of transaction Conditions to be fulfilled
47(vib) Transfer of capital asset by the demerged company
to the resulting company
Resulting company is an Indian Company
47(vic) Transfer of shares of an Indian company by the
demerged foreign company to the resulting foreign
company
 Shareholders holding not less than 3/4th (75%) in value of
shares of the demerged company continue to be share holders
of the resulting foreign company; and
 Such transfer does not attract capital gains tax in the country of
incorporation of the demerged foreign company.
47(vicc) Transfer of shares of a foreign company, which
derives directly or indirectly its value substantially
from shares of an Indian company, by demerged
foreign company to resulting foreign company.
 Shareholders, holding not less than 3/4th (75%) in value of the
shares of the demerged foreign company, continue to remain
shareholders of the resulting foreign company
 Such transfer does not attract capital gains tax in the country of
incorporation of demerged foreign company
47 (vid) Transfer or issue of shares by the resulting company
to shareholders of the demerged company
Transfer or issue of shares is made in consideration of demerger of
the undertaking

12. Relevant Definitions
• Demerger in relation to companies, means the transfer, pursuant to a scheme of arrangement, by a
demerged company of its one or more undertakings to any resulting company in such a manner that:
Property and liabilities of the undertaking being transferred becomes the property and liabilities of the resulting
company and are transferred at book values (except if recorded at fair value as per Indian Accounting Standards)
The resulting company issues, in consideration of the demerger, its shares to the shareholders of the demerged
company on a proportionate basis except where the resulting company itself is a shareholder of the demerged
company
The shareholders holding not less than three-fourths in value of the shares in the demerged company (other than
shares already held) become shareholders of the resulting company or companies by virtue of the demerger
The transfer of the undertaking is on a going concern basis
The demerger shall be in accordance with specific conditions notified by the Central Government to ensure demerger
is for genuine business purpose
Sec 2(19AA) – Definition of Demerger
Demerged company The company whose undertaking is transferred, pursuant to a demerger, to a resulting company
Resulting company One or more companies (including a wholly owned subsidiary) to which the undertaking of the demerged
company is transferred in a demerger and, the resulting company in consideration of such transfer of
undertaking, issues shares to the shareholders of the demerged company and includes any authority or body or
local authority or public sector company or a company established, constituted or formed as a result of demerger

13. Transfers in the Event of Succession or Conversion
Sec Nature of Transaction Conditions to be fulfilled
47(xiii) Transfer of capital asset or intangible asset, by a firm
to the company on succession of business i.e. a
business being continued in another form of
organisation
 All assets and liabilities of the firm/AOP/BOI, immediately
before succession, become assets and liabilities of the
company
 All partners of firm become shareholders in the company in
the same ratio of their capital account balances in the books
of firm as on the date of succession
 Consideration to partners is paid only by way of allotment of
shares in company
 Aggregate shareholding of the partners in the company, is not
less than 50% of total voting power and their shareholding
continues to be the same for a period of 5 years from the
date of succession

14. Contd.
Sec Nature of Transaction Conditions to be fulfilled
47(xiiib) - Transfer of capital asset or
intangible asset by a private
limited company or an
unlisted public company to
a LLP
or
- Transfer of shares in the
company by a shareholder
as a result of conversion of
the company into a LLP
 All assets and liabilities of the company immediately before the conversion become the
assets and liabilities of the LLP.
 All shareholders of the company immediately before the conversion become the partners
of the LLP and their capital contribution and profit sharing ratio in the LLP are in the same
proportion as their shareholding in the company on the date of conversion.
 Shareholders of the company do not receive any consideration or benefit, directly or
indirectly, in any manner, other than by way of share in profit and capital contribution in
the LLP.
 Aggregate of the profit sharing ratio of the shareholders of the company in the LLP shall not
be less than 50% at any time during the period of five years from the date of conversion.
 Total sales, turnover or gross receipts in business of the company in any of the three PYs
preceding the previous year in which the conversion takes place does not exceed 60 lakh
rupees.
 Total value of the assets as appearing in the books of account of the company in any of the
3 PYs preceding the PY in which the conversion takes place does not exceed five crore
rupees.
 No amount is paid, either directly or indirectly, to any partner out of balance of
accumulated profit standing in the accounts of the company on the date of conversion for a
period of 3 years from the date of conversion.

15. Contd.
Sec Nature of Transaction Conditions to be fulfilled
47(xiv) Transfer of a capital asset
or an intangible asset, by a
sole proprietary concern to
the company on succession
in business
 All assets and liabilities of the sole proprietary concern, immediately before succession,
become assets and liabilities of the company.
 Consideration to sole proprietor is paid only by way of allotment of shares in the company.
 Shareholding of the sole proprietor in the company is not less than 50% of total voting
power and the same continues to remain as such for a period of 5 years from the date of
succession.
Withdrawal of Exemption – Sec 47A (3) & (4)
• In case the respective conditions mentioned in Sec 47(xiii), 47(xiib) and 47(xiv) are not complied after claiming the exemption,
• The said exemption shall be revoked and
• The amount of profits or gains arising out of erstwhile transfer of capital assets/ intangible assets or shares, shall be
chargeable to tax in the hands of successor LLP or shareholders of predecessor company, respectively, in the year of violation.

16. Shares and Securities Transactions
Sec Nature of Transactions Remarks
47(x) Conversion of bonds, debentures, debenture
stock or deposit certificates
Exemption of capital gains tax shall be available in case of conversion of
bonds or debentures, debenture stock, deposit certificate into shares or
debentures of that company
47(xb) Conversion of preference shares into equity
shares
Where there is conversion of preference shares of a company into its equity
shares, such conversion shall be exempt from taxation
47(xvii) Exchange of shares in Special Purpose Vehicle
(SPV) with units of business trusts
Where shares of SPV are exchanged for units allotted in business trust, such
transfer shall be exempt from tax
Special purpose vehicle
(SPV)
An Indian company in which the business trust holds controlling interest and any specific
percentage of shareholding or interest, as may be required by the regulations under which such
trust is granted registration
Business trust A trust registered as an Infrastructure Investment Trust or Real Estate Investment Trust under the
regulations of SEBI and the units of which are required to be listed on recognised stock exchange
in accordance with the said regulations

17. Contd.
47(xviii) and 47(xix) Transfer of units allotted in a consolidated scheme or plan of scheme in a mutual fund in return for
units in a consolidating scheme or plan of scheme in a mutual fund
Where the unit holder transfers units held in a consolidating mutual fund scheme or plan in consideration of units in
consolidated mutual fund scheme or a plan respectively, such transfer shall be exempt from taxation.
Proviso to Sec 47 (xviii) - Consolidation is accepted of two or more schemes of equity oriented funds or two or more
schemes of funds other than equity oriented funds.
Consolidation of a scheme of an equity oriented fund with scheme of fund other than equity oriented fund shall not
attract the exemption envisaged under Sec 47(xviii)
47(xviii) Consolidation of schemes of mutual fund
47(xix) Consolidation of plan within a scheme of mutual fund
Consolidated scheme Scheme with which the consolidating scheme merges or which is formed as a result of such merger
Consolidated plan Plan with which the consolidating plan merges or which is formed as a result of such merger
Consolidating scheme Scheme of a mutual fund which merges under the process of consolidation of the schemes of mutual fund in
accordance with the SEBI Regulations
Consolidating plan Plan within a scheme of a mutual fund which merges under the process of consolidation of the plans within a
scheme of mutual fund in accordance with the SEBI Regulations

18. Miscellaneous Transactions
Sec Nature of transaction
47(vica) Transfer of capital asset in a business reorganization, by the predecessor co-operative bank to the
successor co-operative bank
47(vicb) Transfer of shares held by shareholder in the predecessor co-operative bank for allotment of shares
in the successor co operative bank in the event of business re-organisation
Transfers in case of Reorganization of Co-operative banks
Business reorganisation Amalgamation or demerger of a co operative bank
Amalgamation Merger of an amalgamating co-operative bank or banks with an amalgamated co-operative bank, where
a) All the assets and liabilities of the amalgamating co-operative bank or banks immediately before the merger
(other than the assets transferred, by sale or distribution on winding up, to the amalgamated co-operative
bank) become the assets and liabilities of the amalgamated co-operative bank;
b) The members holding 75% or more voting rights in the amalgamating cooperative bank become members of
the amalgamated co-operative bank; and
c) The shareholders holding 75% or more in value of the shares in the amalgamating co-operative bank (other
than the shares held by the amalgamated cooperative bank or its nominee or its subsidiary, immediately
before the merger) become shareholders of the amalgamated co-operative bank

19. Contd..
Demerger Means the transfer by a demerged co-operative bank of one or more of its undertakings to any resulting co-
operative bank, in such a manner that—
a) All the assets and liabilities of the undertaking or undertakings immediately before the transfer become
the assets and liabilities of the resulting co-operative bank;
b) The assets and the liabilities are transferred to the resulting co-operative bank at values (other than
change in the value of assets consequent to their revaluation) appearing in its books of account
immediately before the transfer;
c) The resulting co-operative bank issues, in consideration of the transfer, its membership to the members
of the demerged co-operative bank on a proportionate basis;
d) The shareholders holding 75% or more in value of the shares in the demerged co-operative bank (other
than shares already held by the resulting bank or its nominee or its subsidiary immediately before the
transfer), become shareholders of the resulting cooperative bank, otherwise than as a result of the
acquisition of the assets of the demerged co-operative bank or any undertaking thereof by the resulting
co-operative bank;
e) The transfer of the undertaking is on a going concern basis; and
f) The transfer is in accordance with the conditions specified by the Central Government, by notification in
the Official Gazette, having regard to the necessity to ensure that the transfer is for genuine business
purposes

20. Contd..
Transfer of Assets by a Sick Industrial Unit - Sec 47(xii)
Transfer of capital asset, being land, by a sick industrial company shall be exempt from taxation if:—
Transfer is under a scheme prepared and sanctioned under Sick Industrial Companies (Special Provisions) Act, 1985
The sick company is managed by its workers cooperative
Transfer is made during the period commencing from the PY in which the company became sick and ending with
the PY during which the entire Net worth of such company becomes equal to or exceeds the accumulated losses
"Sick industrial company"  An industrial company (being a company registered for not less than five years) which has at the
end of any financial year accumulated losses equal to or exceeding its entire net worth
 An industrial company existing immediately before the commencement of the Sick Industrial
Companies (Special Provisions) Amendment Act, 1993, registered for not less than five years and
having at the end of any financial year accumulated losses equal to or exceeding its entire net
worth, shall be deemed to be a sick industrial company
"Industrial company" A company which owns one or more industrial undertakings

21. Contd..
"Industrial undertaking" Any undertaking pertaining to a scheduled industry carried on in one or more factories by any company but
does not include—
(i) An ancillary industrial undertaking which is or proposed to be engaged in:—
(a) The manufacture of parts, components, sub-assemblies, toolings or intermediates; or
(b) Rendering of services, or supplying or rendering, not more than fifty per cent. of its production or its
total services, as the case may be, to other units for production of other articles;
which—
(1) Promotes in a harmonious manner the industrial economy of the country and ease the problem of
unemployment and
(2) Secures the ownership and control of the material resources of the community are distributed in best
manner to sub-serve the common good and
(ii) Small scale industrial undertaking means an industrial undertaking which is engaged in the aforesaid
objectives
"Net worth" The sum total of the paid-up capital and free reserves
"Free reserves" All reserves credited out of the profits and share premium account but does not include reserves credited out
of re-evaluation of assets, write back of depreciation provisions and amalgamation
Sec Transaction Remarks
47(viic) Transfer of Sovereign Gold
Bonds
Capital gains arising on transfer of Sovereign Gold Bonds shall be exempt if:-
• Sovereign Gold Bonds are issued by RBI under Sovereign Gold Bond Scheme, 2019-20
• Transfer is by way of redemption
• Transferor is an individual

22. Contd..
Sec Transaction Remarks
47(ix) Transfer of art or
archaeological collection to
specified persons
Transferor – any person
Transferee – Government or a University or the National Museum, National Art
Gallery, National Archives or any such other public museum or institution as may be
notified by the Central Government to be of national importance or to be of renown
throughout any State or States
47(xv) Transfer of securities by way
of short selling
Any transfers by the assessee in a scheme for lending any securities under an
agreement with the borrower of such securities, which is subject to the guidelines
issued by SEBI or RBI, shall be exempt from capital gains tax
Short selling - means selling a stock which the seller does not own at the time of trade
47(xvi) Transfer under reverse
mortgage scheme
Where any asset is transferred by the assessee under a scheme of reverse mortgage,
made and notified by Central Government, capital gains arising out of such transfer
shall be exempt in the hands of the transferor
• A reverse mortgage is a loan available to senior citizens that allows them to convert part of the equity in their homes into cash.
• Under this scheme, the borrower shall mortgage their home, and in return, shall receive regular payments from the scheduled
banks and housing finance companies, registered with National Housing Bank (“NHB”), to meet their expenses.
• No repayments shall be made unless the borrower passes away. After the borrower passes away, the beneficiaries shall decide
whether they want to repay the loan or allow bank to take away the home

23. Cost of Acquisition in Certain Cases

24. Cost with Reference to Certain Modes of Acquisition
Sec Particulars Cost
49(1)  On any distribution of assets on the total or
partial partition of a Hindu undivided family
 Under a gift or will;
 By succession, inheritance or devolution, or
 On any distribution of assets on the
liquidation of a company, or
 Under a transfer to a revocable or an
irrevocable trust, or
 Holding-subsidiary, Amalgamation,
Demerger, Succession or Conversion
Transactions
 HUF received by way conversion of property
of member to common stock of HUF
• Cost of acquisition of assets transferred, in the hands of the
transferee, shall be cost at which the previous owner acquired the
said capital asset, as increased by the cost of improvement borne by
the previous owner and assessee
• In case the previous owner also acquired the said capital asset
through partition, gift, or irrevocable the cost of acquisition in the
hands of transferee shall be the actual cost paid by the ultimate
previous owner/(s) to acquire the said capital asset
49(2) Transfer of shares held in amalgamating
company by a shareholder
Cost of original shares held in amalgamating company
49(2AAA) Rights as Partner in an LLP acquired by way of
Conversion of Company into LLP
• Cost of acquisition shall be the amount paid by such a partner as a
shareholder of the converted company, for acquiring the shares in
the company before such conversion
• Rights of a partner here refers to share of the profits/losses of the LLP
and to receive distributions in accordance with the LLP Agreement

25. Contd..
Sec Particulars Cost
49(2AA)
and
49(2AB)
Transfer of specified securities or sweat equity
shares
Fair market value ("FMV") as on date of exercise of such option
by the employee less any amount recovered from the employee
in respect of such shares
49(2AC) Exchange of shares in Special Purpose Vehicle
(SPV) with units of business trusts
Cost of acquisition of units in business trust shall be the cost
paid by the unit holder for acquiring the shares in SPV
49(2AD) Consolidation of schemes of mutual fund Cost of acquisition of the units in consolidated scheme of
mutual fund shall be the cost paid by the unit holder for
acquiring the units in the consolidating scheme of mutual fund
49(2AF) Consolidation of plan within a scheme of mutual
fund
Cost of acquisition of the units in consolidated plan of a scheme
of mutual fund shall be the cost paid by the unit holder for
acquiring the units in the consolidating plan of a scheme of
mutual fund
49(2AE) Preference shares are converted into equity
share
Cost of acquisition shall be the cost of acquisition of the
preference shares held by the assessee

26. Contd..
Sec Particulars Cost
49(2C) Cost of acquisition of the shares in the
resulting company
(Cost of Acquisition of the shares in demerged company X Net book value of
assets transferred to resulting company)
--------------------------------------------------------------------------------------
Net Worth of Demerged company
49(2D) Cost of acquisition of the original
shares held by the shareholder in the
demerged company
COA – Cost determined in Sec 49(2C) above
49(2E)
Business re-organisation of co-
operative banks
Cost of acquisition of shares shall be the cost of original shares held in
amalgamating company
Cost of acquisition of shares in
resulting co-op bank
computed as per Sec 49(2C)
Original shares held by the
shareholder in the demerged co-op
bank
COA (–) Cost determined as per 49(2C)
49(3) Withdrawal of exemption under Sec
47A – Holding Subsidiary Transactions
Cost of acquisition of the capital asset in the hands of transferee shall then be
the actual cost of such capital asset paid by transferee to transferor at the time
of erstwhile transfer

27. Contd..
Sec Particulars Cost
49(4) Assets subject to gift tax under Sec
56(2)(vii), 56(2)(viia) and 56(2)(x)
Cost of acquisition of such asset shall be the value taxed under that Sec
49(5) Assets declared under Income
Declaration Scheme, 2016
Capital gains on transfer of asset declared, wherein the tax, surcharge and
penalty have been paid in accordance with the provisions of the Scheme on the
FMV of the asset as on the date of commencement of the Scheme
The cost of acquisition of the asset shall be deemed to be such FMV
49(7) Actual sale of flats received under
Joint Development Agreement
Cost of acquisition of such flats shall be the full value of consideration
considered for the purpose of computing capital gains under Sec 45(5A)
49(8) Asset held by a trust or an institution
in respect of which accreted income
has been computed
Cost of acquisition of such asset shall be the FMV of the asset which was
considered for computation of accreted income as on the specified date
• The accretion in income (accreted income) of the trust or institution shall be taxable on conversion of trust or institution into other
forms not eligible for tax incentives
• Accreted income shall be the aggregate FMV of total assets, as on specified date being date of conversion or the date of merger or
the date of dissolution, as reduced by the liability
49(9) Stock in trade which was converted
into capital asset
FMV on the date of conversion i.e. the income which was offered for taxation as
business income

28. Capital Gains in case of Specified Assets

29. Tax on Long Term Capital Gains from Specified Assets —
Sec 112A
• However, the condition of STT on transfer shall not be applicable for transactions undertaken on recognised stock exchange
located in International Financial Services Centre and where consideration for such transfer is in foreign currency.
• Further, Central Government may notify transactions for exemption from payment of STT on acquisition of equity shares
• Long term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit of a
business trust shall be taxed at 10% of such capital gains exceeding Rs. 1 lakh
• This concessional rate of 10 per cent will be applicable to such long term capital gains, if—
o STT has been paid on both acquisition and transfer of such equity shares.
o STT has been paid on transfer of such units.
No indexation benefit shall be allowed.
No benefit of computation of capital gains in foreign currency in the case of a non-resident.
Deduction under Chapter-VIA and rebate under section 87A shall be allowed from the gross total income as reduced by such capital gains

30. Cost of Acquisition
Fair market value has been defined to mean—
• In case of Listed capital asset
o The highest price of the capital asset quoted on recognised stock exchange on the 31st day of January, 2018.
o However, where there is no trading in such asset on such exchange on the 31st day of January, 2018, the highest price of such
asset on such exchange on a date immediately preceding the 31st day of January, 2018 when such asset was traded on such
exchange shall be the fair market value; and
• In case of Unlisted capital asset
o In a case where the capital asset is a unit and is not listed on recognized stock exchange, the net asset value of such asset as on
the 31st day of January, 2018.
The cost of acquisition in respect of long term capital asset acquired before 1st February 2018 shall be deemed to be higher of—
• Actual cost of acquisition; and
• Lower of—
o FMV of such asset; or
o Sale value of such asset.
Cost of acquisition for bonus shares and rights shares shall be the fair market value of such shares as on 31.01.2018

31. Treatment for Loss
It shall be noted that loss on or after 01.04.2018 shall be allowed to set-off and carry forward without the restriction of Rs 1,00,000
Unabsorbed loss can be carried forward to subsequent eight years for set-off against long-term capital gains.
Loss arising on or after 01.04.2018 shall be allowed to set-off and carry forward in accordance with the existing provisions of the Act
i.e. it can be set-off against any other long-term capital gains and
Any long term capital loss from the above mentioned assets during the period 01.02.2018 to 31.03.2018 shall not be allowed to set-
off and carry forward;
The said amendment is applicable for LTCG accruing on or after 01.04.2018;

32. Thank You
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