Determine whether the income arising from the transfer of shares of GreenCore Global Ltd. is chargeable to tax in India in the hands of Lucas…

Capital gain arising in the hands of Lucas Pereira and Daniel Zhang from transfer of a capital asset situated in India would be deemed to accrue or arise in India. Shares of GreenCore Global Ltd., Country Zeta, shall be deemed to be situated in India if those shares derive directly or indirectly, its value substantially from assets located in India. Shares of GreenCore Global Ltd. would be deemed to derive its value substantially from the assets located in India, if on the specified date, the fair market value of Indian assets (without reduction of liabilities) i.e., fair market value of assets of EcoPack Solutions Pvt. Ltd. exceeds 10crores; andrepresents at least 50% of the value of all the assets owned by GreenCore Global Ltd. Specified date would be the date of transfer i.e., 1.6.2024 since book value of the assets of GreenCore Global Ltd. on the date of transfer i.e., 2,600 crores exceed the book value of the assets as on the last balance sheet date preceding the date of transfer i.e., 2,000 crores by at least 15%. Shares of GreenCore Global Ltd. derives its value substantially from assets located in India since the fair market value of assets located in India (without reduction of liabilities) on 1.6.2024, being the specified date i.e., 1200 crores exceed 10crores and represents more than 50% i.e., 54.545% of the fair market value of assets of GreenCore Global Ltd. i.e.,2,200 crores. Hence, the shares of GreenCore Global Ltd. would be deemed to be a capital asset situated in India and the capital gains from the transfer of shares of GreenCore Global Ltd. by Lucas Pereira and Daniel Zhang would be deemed to accrue or arise in India. Accordingly, the capital gains arising from transfer of shares of GreenCore Global Ltd. would be taxable in the hands of Lucas Pereira and Daniel Zhang in India as per Income-tax Act, 1961.