CHAPTER –XII-A
SPECIAL PROVISIONS RELATING TO CERTAIN INCOMES OF NON-RESIDENTS
| Section | Section heads | Comments |
| 115G | Provision of this chapter as discussed is optional and assessee may not avail this option in a AY , in such cases regular provisions of IT act apply |
A non-resident Indian may elect not to be governed by the provisions of this Chapter for any assessment year by furnishing his return of income for that assessment year under section 139 declaring therein that the provisions of this Chapter shall not apply to him for that AY and if he does so, the provisions of this Chapter shall not apply to him for that AY and his total income for that AY shall be computed and tax on such total income shall be charged in accordance with the other provisions of this Act. |
| 115D |
Investment income or income by way of long-term capital gains. Note: investment income” means any income derived from a foreign exchange asset; |
no deduction shall be allowed to the assessee under Chapter VI-A and
provisions of the second proviso to section 48 ( related to indexation in respect of long term capital assets) shall not apply to income chargeable under the head “Capital gains” |
| 115E | Tax on investment income and long-term capital gains.
|
a) income from investment or income from long-term capital gains of an asset other than a specified asset- tax@ 20%; b) income by way of long-term capital gains- tax @10% c) Other income – normal tax on income after reducing (a) and (b) above. |
| 115F | Capital gains on transfer of foreign exchange assets not to be charged.
Meaning of specified assets: “specified asset” means any of the following assets, namely :— (i) shares in an Indian company; (ii) debentures issued by an Indian company which is not a private (iii)deposits with an Indian company which is not a private company; (iv) any security of the Central Government (v) such other assets as the Central Government may specify in this behalf by notification in the Official Gazette. |
No capital gain tax , if assessee has, within a period of 6 months after the date of such transfer, invested the whole or any part of the net consideration in any specified asset, or in any savings certificates referred to in clause (4B) of section 10 (such specified asset , or such savings certificates . (1) If full net consideration invested- no capital gain tax (2) If part of net consideration invested- on proportionate – no capital gain tax. Note: new asset shall not be transferred or converted (otherwise than by transfer) into money, within a period of 3 years from the date of its acquisition, otherwise deemed to be income chargeable under the head “Capital gains” in the year in which new assets transferred. |
| 115 G | Return of income not to be filed in certain cases | If total income during the previous year consisted only of investment income or income by way of long-term capital gains or both; and
(b) tax deductible at source has been deducted from such income. |
