(1)Where, in the case of an assessee being a non-resident Indian, any long-term capital gains arise from the transfer of a foreign exchange asset (the asset so transferred being hereafter in this section referred to as the original asset), and the assessee has, within a period of six months after the date of such transfer, invested [* * *] [ Certain words omitted by Act 26 of 1988, Section 32 (w.e.f. 1.4.1989).] the whole or any part of the net consideration in any specified asset [* * *] [ Certain words omitted by Act 26 of 1988, Section 32 (w.e.f. 1.4.1989).] or in any savings certificates referred to in clause (4-B), of section 10 (such specified asset [* * *] [ Certain words omitted by Act 26 of 1988, Section 32 (w.e.f. 1.4.1989).] or such savings certificates being hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,-(a)if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45;(b)if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of acquisition of the new asset bears to the net consideration shall not be charged under section 45.Explanation. - For the purposes of this sub-section,-(i)"cost", in relation to any new asset, being a deposit [* * *] [ Certain words omitted by Act 26 of 1988, Section 32 (w.e.f. 1.4.1989).] referred to in sub-clause (iii), or specified under sub-clause (v), of clause (f) of section 115-C, means the amount of such deposit;(ii)"net consideration", in relation to the transfer of the original asset, means the full value of the consideration received or accruing as a result of the transfer of such asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer.
