Section 47(viiab) - Transfer by a non-resident on a recognized stock exchange located in any International Financial Services Centre

Non resident transfers on IFSC recognised stock exchanges not treated as transfer for capital gains when consideration is in foreign currency.

Section 47(viiab) provides that a transaction by a non resident on a recognised stock exchange in an IFSC, where consideration is paid or payable in foreign currency, shall not be treated as a transfer for capital gains purposes. The exclusion applies only to specified capital assets, including bonds and GDRs, derivatives, foreign currency denominated securities of Indian companies, units of mutual funds, business trusts, alternative investment funds, and bullion depositary receipts, and to any additional securities notified by the government.