Mrs. Vandana, an Indian citizen and non-resident in India, furnished the following information for the previous year 2024-25: (i) Dividend (gross)…

CA Final · Direct Tax Laws and International Taxation · MTP · September 2025
Mrs. Vandana, an Indian citizen and non-resident in India, furnished the following information for the previous year 2024-25: (i) Dividend (gross) from YRF Ltd., an Indian Company, of 1,85,000. (ii) Interest on debentures of Videocon Pvt. Ltd. (subscribed in convertible foreign exchange) of 2,15,000 (gross). (iii) She incurred interest on loan taken for purchase of shares of YRF Ltd. and for purchase of debentures of Videocon Pvt. Ltd. of 45,000 and - 55,000, respectively. (iv) On 15th March 2025, she sold debentures of Jargon Ltd. for 22,75,000 which were subscribed in convertible foreign exchange on 10th June 2006 in dollars equivalent to 7,85,000. She paid commission to broker of 8,000 at the time of sale. (v) On 30th April, 2025, she reinvested the sale proceeds of debentures of 8,40,000 for purchase of listed shares of an Indian company, Fortune Prime Ltd. Cost Inflation Index: F.Y. 2006-07 - 122; F.Y.2024-25 – 363. From the information given above, choose the most appropriate answer to the following questions:
(A) ₹ 1,85,000 and 10%
(B) ₹ 1,47,000 and 10%
(C) ₹ 1,55,000 and 20.8%
(D) ₹ 1,85,000 and 20.8%

Suggested Answer and Working Notes:

Correct Answer: Option (D)

₹ 1,85,000 and 20.8%

Topics: Double Taxation Relief, Non-Resident Taxation, Capital Gains

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