Section 115F - Capital gains on transfer of foreign exchange assets not to be charged in certain cases

Reinvestment exemption for foreign exchange asset gains - reinvest within the prescribed period; exemption subject to clawback on early conversion.

Capital gains to a non-resident Indian from transfer of a foreign exchange asset are not charged if the assessee reinvests whole or part of the net consideration in prescribed new assets within the statutory reinvestment period; full or proportionate exemption depends on whether the new asset s cost equals or is less than the net consideration. If the new asset is transferred or converted into money within the prescribed holding period, the previously exempted capital gain is deemed income under the head 'Capital gains' in the year of such transfer or conversion.