- General Provisions
- Special Provisions
- Non Resident Indian (NRI)
- Special Business
- Relief for Double Taxtation
- Advance Rulings
- Exempted Income
- DTA Agreements
- Transfer Pricing
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- Non Resident
- Non Resident Indian (NRI)
Special Provisions
- General Provisions
- Special Provisions
- Non Resident Indian (NRI)
- Special Business
- Relief for Double Taxtation
- Advance Rulings
- Exempted Income
- DTA Agreements
- Transfer Pricing
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Special provision in case of Non-resident Indian [Sec.115C to 115-I]
- Applicable on
- Special Provision [Sec.115D]
- Tax on Investment Income and Long Term Capital Gain [Sec.115E]
- Exempted Capital Gain [Sec. 115F]
- Return of Income not to be filed in certain cases [Sec.115G]
- Applicability of provision after becoming resident [Sec.115H]
- Non-applicability of provision [Sec.115I]
Applicable on
Non-resident Indians deriving -
a) Income from investment in foreign exchange asset; or
b) Long-term capital gain on foreign exchange asset.
Notes
Specified asset means any of the following:
- Shares in Indian company;
- Debenture issued by an Indian company which is not a private company;
- Deposit with an Indian company, which is not a private company;
- Any security of the Central Government; or
- Any notified asset.
Investment income means any income (other than dividend referred in sec. 115-O) derived from a foreign exchange asset.
Non-resident Indian means an individual, being a citizen of India or a person of Indian origin who is not a resident.
- No deduction in respect of any expenditure or allowance is allowed under any provision of this Act in computing the investment income
- No deduction shall be allowed to the assessee u/s 80C to 80U
Tax on investment income and long term capital gain [Sec. 115E]
Exempted capital gain [Sec. 115F]
Applicable to
Non-resident Indian (i.e. an individual being a citizen of India or a person of Indian origin who is a non-resident)
Conditions
- Assessee has transferred any of the following long term capital asset, acquired in convertible foreign exchange:
- Shares in an Indian company; or
- Debentures of an Indian public limited company; or
- Deposits with an Indian public limited company; or
- Central Government securities.
- Within 6 months of transfer of original asset, the taxpayer has invested the whole or any part of net consideration in any of the following assets (hereinafter referred to as new asset)
- Shares in an Indian company; or
- Debentures of an Indian public limited company; or
- Deposit with an Indian public limited company; or
- Central Government securities; or
- National Savings Certificate VI and VII issues.
(hereinafter referred to as original asset )
Amount of exemption
Exemption is available to the minimum of the following:
a) Long term capital gain; or
b) Long term capital gain * Amount invested in the new asset
Net sale consideration on transfer of original asset
Withdrawal of exemption
When the new asset acquired by the assessee is transferred or converted into money within 3 years from the date of its acquisition, the capital gains exempted earlier shall be revoked.
On revocation of exemption, benefit availed earlier under this section shall be taxed as long-term capital gain in the previous year in which such new asset is transferred or converted into money.
Note : Sec. 115F is optional in nature and not mandatory, i.e. an assessee may or may not opt for sec. 115F by giving a declaration in return of income to this effect. [Sec. 115-I]
Return of income not to be filed in certain cases [Sec. 115G]
It is not necessary to file return if during the previous year there is no other income and tax has been deducted at source.
Applicability of provisions after becoming resident [Sec. 115H]
Where a person become assessable as resident in India in any subsequent previous year, he may assessed as above provisions for that income provided he file a declaration in writing along with his return of income of subsequent year in this regard.
Non-applicability of provisions [Sec. 115I]
