Definition of foreign exchange asset clarifies tax treatment of investments acquired in convertible foreign exchange under the Bill.

Clause 212 defines a foreign exchange asset as any specified asset acquired with convertible foreign exchange and investment income as income from such assets. It treats long-term capital gains as gains from foreign exchange assets that are not short-term, defines non-resident Indian by citizenship or origin when not resident, and lists specified assets including shares, certain debentures and deposits of non-private Indian companies, and central government securities, with provision for additional notified assets.

---

---

---