Tax on income from foreign currency purchased mutual fund units imposes a separate computation and restricted deductions for offshore funds. Section 115AB prescribes a separate tax computation for an overseas financial organisation: income from units purchased in foreign currency and long term capital gains on their transfer are each taxed at a specified flat rate while the remaining income is taxed after excluding those amounts; deductions are disallowed if gross income consists solely of such income, and where such income is partial the amount is excluded for the purpose of allowing Chapter VI A deductions as if the reduced gross total income were the assessee's gross total income.
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.
Tax on income from foreign currency purchased mutual fund units imposes a separate computation and restricted deductions for offshore funds.
Section 115AB prescribes a separate tax computation for an overseas financial organisation: income from units purchased in foreign currency and long term capital gains on their transfer are each taxed at a specified flat rate while the remaining income is taxed after excluding those amounts; deductions are disallowed if gross income consists solely of such income, and where such income is partial the amount is excluded for the purpose of allowing Chapter VI A deductions as if the reduced gross total income were the assessee's gross total income.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
