Section 115F of ITA, 1961 : Section 115F: Capital Gains On Transfer Of Foreign Exchange Assets Not To Be Charged In Certain Cases

Explanation using Example

Imagine a non-resident Indian named Raj who owns shares in a foreign company that qualify as a foreign exchange asset under the Income-tax Act. Raj sells these shares and makes a long-term capital gain of ₹10,00,000. He decides to reinvest ₹8,00,000 out of his net consideration from the sale into specified bonds which are a new asset as per the Income-tax Act, within six months of the sale of his original shares.

According to Section 115F of the Income-tax Act, Raj's tax liability will be c...

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