Capital Gains In Case Of Non-Residents - FIRST PROVISO TO SECTION 48 AND RULE 115A

Foreign currency conversion rule: non-resident capital gains on Indian shares and debentures computed in original purchase currency then reconverted.

For non-residents who purchased shares or debentures in a foreign currency or who reinvested, capital gains must be computed by converting cost of acquisition, transfer-related expenditure and sale consideration into the same foreign currency used for purchase, computing the gain in that currency and reconverting it into Indian rupees; this mandatory proviso applies to short- and long-term gains without indexation, excludes mutual fund units and specified government bonds, and is implemented via Rule 115A using telegraphic transfer rates for conversion.