Transfer of a capital asset being a Government security, made outside India through an intermediary by a non-resident to another non-resident not to be regarded as transfer [Section 47(viib)] [W.e.f. A.Y.2015-16]
The Act has inserted section 47(viib) 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 regarded as a transfer.
1.For the purposes of this clause,"Govenment Security shall have the meaning assigned to it in clause (b) of section 2 of the Securities Contracts (Regulation) Act,1956[Explanation to Section 47(Viib)]
2.As per section 2(b) of the Securities Contracts(Regulation) Act,1956 "Government security" means a security created and issued, Wheather before or after the commencement of this Act, by the central Government or a state Government or a state Government for the purpose of raising a public loan and having one of the forms specified in clause (2) of the public Debt Act,1994.back