Method of Computation of Capital Gains - (New) Section 72 / (Old) Section 48

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.... (d) Additional deduction for specified Entity referred under 72(6) (xxx) Less: Exemption under Sections 82 to 89 (xxx) Short-term/Long-term capital gain or Loss xxx Non-allowable Deductions [ Section 72(3) ] (a) the interest claimed as deduction under section 22(1)(b) (i.e. Interest on Home Loan) or (b) Any amount of deduction claimed under Chapter VIII; (b) any sum paid as securities transaction tax (i.e. STT) under Chapter VII of the Finance (No. 2) Act, 2004. Adjustment in Case of Business Trust Distributions [ Section 72(4) ] If a unit holder receives certain type of income from business trust (i.e. Interest, Dividend or Rental Income) and suc....

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....¢ the capital gains so computed in such foreign currency shall be reconverted into Indian currency according to manner specified under rule 52.  Apply this manner of computation of capital gains shall be applicable in respect of capital gains accruing or arising from every reinvestment thereafter in, and sale of, shares in, or debentures of, an Indian company. Exemption for Currency Appreciation on Rupee-Denominated Bonds [ Section 72(7) ] Applies to non-residents investing in rupee-denominated bonds. Rule: Any gain arising due to • Appreciation of rupee against foreign currency at redemption shall be ignored while computing consideration. Under Section 48 of the Income Tax Act, 1961 [....

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....r section 24(b) (Home Loan Interest) • any deduction claimed under the provisions of Chapter VIA • any sum paid as securities transaction tax (i.e. STT) under Chapter VII of the Finance (No. 2) Act, 2004 • (iii) Reduction of Acquisition Cost for Distributions from Business Trusts - • The cost of acquisition of a unit of a business trust has to be reduced  • by any sum received by a unit holder from the business trust with respect to such unit, which is not in the nature of • interest and dividend referred to in section 10(23FC) or • rental Income referred to in section 10(23FC) and  • which is not chargeable ....

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.... result of the transfer of the capital asset into the same foreign currency as was initially utilised in the purchase of the shares or debentures, and the capital gains so computed in such foreign currency shall be reconverted into Indian currency, so, however, that the aforesaid manner of computation of capital gains shall be applicable in respect of capital gains accruing or arising from every reinvestment thereafter in, and sale of, shares in, or debentures of, an Indian company  • Second Proviso to Section 48 : Cost of Acquisition/ Cost of Improvement to be indexed in case of long term capital asset unless otherwise specified • Where long-term capital gain arises from the transfer [(which takes place....

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..... • Third Proviso to Section 48 : First and second provisos of section 48 not to apply in case of long-term capital asset referred to in section 112A • The first and second provisos shall not apply to the capital gains arising from the transfer of a long-term capital asset being: • (i) an equity share in a company; or • (ii) a unit of an equity oriented fund; or • (iii) a unit of a business trust  • referred to in section 112A. • Rupee Denominated Bond (RDB) • Appreciation of rupee against a foreign currency to be ignored at the time of redemption of Rupee Denominated Bond (RDB)   • In case of an assessee being a no....