Section – 48 – Extension of capital gain
exemption to Rupee Denominated Bonds -
In order to provide relief in
respect of gains arising on account of appreciation of rupee against a foreign
currency at the time of redemption of rupee denominated bond of an Indian
company to secondary holders as well, it is proposed to amend section 48
providing that the said appreciation of rupee shall be ignored for the purposes
of computation of full value of consideration.
Further, with a view to
facilitate transfer of Rupee Denominated Bonds from non-resident to
non-resident, it is proposed to amend section 47 so as to provide that any
transfer of capital asset, being rupee denominated bond of Indian company
issued outside India, by a non- resident to another non- resident shall not be
regarded as transfer.
The amendment will be effective
from 1st April 2018.