Capital gains on transfer of foreign exchange assets not to be charged in certain cases
(1)
Where, in case of an assessee, being a non-resident Indian,–– on (a) any long-term capital gains arises from the transfer of a exchange asset (herein referred as original asset); and (b) within six months after the date of such transfer, he has invested whole or any part of the net consideration in any specified asset referred as new asset), then the capital gains shall be dealt with in the following manner:— (i) if the cost of the new asset is not less than the net consideration respect of the original asset, the whole of such capital gain shall not be under section 67;
(ii)
if the cost of the new asset is less than the net consideration in of the original asset, then the capital gain computed by the following shall not be charged under section 67:–– A=B×C D Where, A = the capital gains not to be charges being computed; B = whole of the capital gain; C = cost of acquisition of the new asset; D = net consideration in respect of the original asset.
(2)
For the In sub-section (1),––
(a)
“cost”, in relation to any new asset, being a deposit referred section 212(e)(iii)(v), means the amount of such deposit;