S. 90 : Double taxation relief-Capital gains-Mutual fund Units- Singapore resident-Sale/redemption of mutual fund units would be covered Article 13 of DTAA-Not taxable in India-DTAA-India-Singapore. [Art. 13(4), 13(5)]
Assessee is a non-resident Indian and is a resident of Singapore . The assessee has shown exemption in respect of capital gains earned on sale of Mutual fund is exempt as she is the tax residence of Singapore as per 13of the DTAA . The AO denied the exemption. The DRP affirmed the denial of exemption by the AO. On appeal the Tribunal held that the short term capital gains arising from sale/redemption of mutual fund units would fall within the ambit of Para 5 of Article 13 of DTAA between India and Singapore. Para 5 of Article 13 of India Singapore DTAA reads as under:
“5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3, 4A and 4B of this Article shall be taxable only in the Contracting State of which the alienator is a resident.”
Accordingly the Tribunal deleted the addition. Followed, ITO v. Satish Beharilal Raheja (2013) 137 taxmann.com 296 (Mum)(Trib) (IT(IT)A No. 174/Mum/ 2025 dt 26-3- 2025)(AY. 2022-23 )
Anushaka Sanjay Shah (Ms) v. ITO (IT) (Mum.)(Trib.) www.itatonline.org
[Coram : Hon’ble Smt Beena Pillai, JM And Hon’ble Smt. Renu Jauhri, AM]