CBDT Expands The List Of Securities Eligible For Tax Exemption On A Recognised Stock Exchange In IFSC

The section 47(viiab) exemption's scope has been expanded by the Central Board of Direct Taxes (CBDT).

The Income Tax Act of 1961, Section 47(viiab), exempts transfers of capital assets made by non-residents on recognised stock exchanges situated in any International Financial Services Centre (IFSC) from paying capital gains tax.

The exemption is now available to units of investment trust, units of exchange-traded funds and units of schemes framed under International Financial Services Centres Authority (Fund Management) Regulations, 2022.

The exemption is available only if the three conditions are met.

Firstly, the transfer is made on a recognized stock exchange located in any IFSC.

Secondly, the consideration for the transfer is paid or payable in foreign currency.

Lastly, the capital asset is one of the assets specified in section 47(viiab).

Notification No. 71/2023

Date: 12/09/2023

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