Today’s case - Sale of originally held and bonus shares - Long-term capital gains arising to non-resident company - benefit of 10% rate u/s 112 cannot be denied : Advance Ruling Authority
The Authority held that the tax payable on a long-term capital gains arisen to Moron Holdings PLC on the sale of originally acquired shares of Moron Tea Company (India) Ltd. will be @ 10% in consonance with the proviso to section 112(1) of the Act. Even in respect of sale consideration arising out of the bonus shares, the tax liability of the non-resident foreign company will be @ 10% only as per the proviso to section 112(1) of the Act.