No Tax on Transfer of Government Security by one non-resident to another non-resident

Budget 2014- Transfer of Government Security by one non-resident to another non-resident

The existing provision contained in section 47 of the Act provides that certain transactions shall not be considered as transfer for the purpose of charging of capital gains.

With a view to facilitate listing and trading of Government securities outside India, it is proposed to insert clause (viib) in the said section so as to provide that any transfer of a capital asset, being a Government Security carrying a periodic payment of interest, made outside India through an intermediary dealing in settlement of securities, by a non-resident to another non-resident shall not be considered as transfer for the purpose of charging capital gains.

This amendment will take effect from 1^st April, 2015 and will, accordingly, apply in relation to assessment year 2015-16 and subsequent assessment years.