Capital Gain Computation - u/s. 50AA can apply in Foreign Bonds - Listed or Unlisted in US

[PRIYAM KHAMBHATA]

Respected Sir

Thank you for guidance me on Issue Id 121016.

Further, In reference to the opinion given against Issue Id 121016, I have a question or doubt and which has to confirm and clear that, as per your given opinion on Specified Mutual Fund ie US Listed ETFs', Special Provision for Computation of Capital gain on sold Foreign US Listed ETFs', provision of section 50AA do not apply. But it may kindly be noted that my client has sold US Bond also. Therefore, my query regarding sold out of

VANGUARD SHORT TERM BOND - BSV

VANGUARD TOTAL BOND MARKET - BND

Please guide me that whether, above stated US bonds are covered under Market Linked Debentures as US unlisted or listed bonds), In this regards, the provision of section 50AA - Special provision for computation of capital gain on sold of Foreign Bonds will apply.

Thanks

AI Summary

Capital gains on foreign bonds under section 50AA raise the question of market linked debenture treatment and tax computation scope. Consideration is sought on whether section 50AA, which provides a special mode for computation of capital gains, extends to foreign bonds sold in the United States, whether listed or unlisted. The query distinguishes between US-listed ETFs and US bond products and asks whether the specified Vanguard bond funds are to be treated as market linked debentures or as foreign bonds falling within the scope of the provision.