Tax on income from units purchased in foreign currency or capital gains arising from their transfer
(1)
The income-tax payable on the total income of an assessee, being overseas financial organisation (herein referred to as Offshore Fund), includes income specified in column B of the Table below, shall be the aggregate the amount specified in column C thereof. Table Sl. Income Income-tax payable No. A B C 1. Income received in respect of units purchased in 10 % foreign currency. 2. Long-term capital gains arising from the transfer 12.5% of units purchased in foreign currency. 3. Total income as reduced by income referred to in Income-tax against serial numbers 1 and 2. chargeable on income.
(2)
Where the gross total income of the Offshore Fund— (a) consists only of income from units or income by way of long-term capital gains arising from the transfer of units, or both, no deduction shall allowed to the assessee under sections 26 to 61 or section 93(1)(a) and under Chapter VIII;
(b)
includes any income referred to in clause (a),–– (i) the gross total income shall be reduced by such income; and (ii) the deduction under Chapter VIII shall be allowed as if gross total income so reduced were the gross total income of assessee.
(3)
In this section,––