Conversion of foreign bank branch into Indian subsidiary: capital gains exempt subject to notified conditions; noncompliance revokes benefits. Conversion of an Indian branch of a foreign banking company into an Indian subsidiary under an RBI scheme results in capital gains from the conversion not being chargeable to tax, subject to Central Government notified conditions; provisions on unabsorbed depreciation, set off and carry forward of losses, tax credit for deemed income and computation of income shall apply with specified exceptions. Failure to comply with scheme or notification conditions removes these benefits and permits re computation and amendment of assessments with section 154 applying as specified; notifications must be laid before Parliament.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Conversion of foreign bank branch into Indian subsidiary: capital gains exempt subject to notified conditions; noncompliance revokes benefits.
Conversion of an Indian branch of a foreign banking company into an Indian subsidiary under an RBI scheme results in capital gains from the conversion not being chargeable to tax, subject to Central Government notified conditions; provisions on unabsorbed depreciation, set off and carry forward of losses, tax credit for deemed income and computation of income shall apply with specified exceptions. Failure to comply with scheme or notification conditions removes these benefits and permits re computation and amendment of assessments with section 154 applying as specified; notifications must be laid before Parliament.
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