Conversion of Indian branch to subsidiary: capital gains exempt if statutory conditions and notifications are satisfied. When a foreign banking company's Indian branch is converted into a subsidiary Indian company under an RBI scheme, capital gains from that conversion are not chargeable in the tax year of conversion subject to Central Government notification; specified rules on unabsorbed depreciation and loss set off, tax credit for deemed income, and income computation shall apply with exceptions as notified. Non compliance with scheme or notification conditions causes denial of these benefits and permits reassessment and application of section 287 procedures with the statutory four year reckoning from the tax year of failure.