gayatri projects limited - Edelweiss

GAYATRI PROJECTS LIMITEDcontrol regulations), protection is provided from fluctuations in the value of rupee in terms of foreigncurrency in which the original investment was made. Cost indexation benefits will not be available insuch a case.c) Under Section 54EC of the Act, capital gain arising from transfer of long term capital assets (other than thoseexempt U/Sec 10(38)) shall be exempt from tax, subject to the conditions and to the extent specified therein,if the capital gain are invested within a period of six months from the date of transfer in the bonds redeemableafter three years and issued on or after the 1st day of April 2006 -a) National Highways Authority of India constituted under Section 3 of National Highways Authority of IndiaAct, 1988, and notified by Central Government in the Offical Gazette for purpose of this section; orb) Rural Electrification Corporation Limited, a company formed and registered under the Companies Act,1956; and notified by Central Government in the Offical Gazette for purpose of this section.If only part of the capital gain is so reinvested, the exemption shall be proportionately reduced. However, theamount so exempted shall be chargeable to tax subsequently, if the new bonds are transferred or convertedinto money within three years from the date of their acquisition.d) Under Section 54F of the Act, where in the case of an individual or HUF capital gain arise from transfer oflong term assets (other than a residential house and those exempt U/Sec. 10(38)), then such capital gain,subject to the conditions and to the extent specified therein, will be exempt if the net sales consideration fromsuch transfer is utilized for purchase of residential house property within a period of one year before or twoyear after the date on which the transfer took place or for construction of residential house property within aperiod of three years after the date of transfer.e) Under Section 111 A of the Act, capital gains arising from transfer of short term capital assets, being an equityshare in a company or unit of an equity oriented mutual fund, which is subject to securities transaction tax willbe taxable under the Act @10% (plus applicable surcharge and educational cess).f) Under Section 112 of the Act and other relevant provisions of the Act, long term capital gains (not coveredunder Section 10(38) of the Act) arising on transfer of shares in the Company, if shares are held for a periodexceeding 12 months, shall be taxed at a rate of 20% (plus applicable surcharge and educational cess onincome-tax) after indexation as provided in the second proviso to Section 48 or at 10% (plus applicablesurcharge and educational cess on income-tax) (without indexation), at the option of the Shareholders..2.5 Foreign Institutional Investors (FIls)a) By virtue of Section 10(34) of the Act, income earned by way of dividend income from another domesticcompany referred to in Section 115-O of the Act, are exempt from tax in the hands of the institutional investor.b) Under section 115AD capital gain arising on transfer of short capital assets, being shares and debentures ina company, are taxed as follows:(i) Short term capital gain on transfer of shares / debentures entered in a recognized stock exchangewhich is subject to securities transaction tax shall be taxed @ 10% (plus applicable surcharge andeducational cess); and(ii) Short term capital gains on transfer of shares / debentures other than those mentioned above would betaxable @ 30% (plus applicable surcharge and educational cess).c) Under section 115AD capital gain arising on transfer of long term capital assets, being shares and debenturesin a company, are taxed @ 10% (plus applicable surcharge and educational cess). Such capital gains wouldbe computed without giving effect to the first and second proviso to section 48. In other words, the benefit ofindexation, direct or indirect, as mentioned under the two provisos would not be allowed while computing thecapital gains.d) Under Section 54EC of the Act, capital gain arising from transfer of long term capital assets (other than thoseexempt U/Sec 10(38)) shall be exempt from tax, subject to the conditions and to the extent specified therein,if the capital gain are invested within a period of six months from the date of transfer in the bonds redeemable38