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Section 115E: Specified Tax Rates

For Non-Resident Indians (NRIs), the specified tax rates on total income include:

• Investment Income and Long-Term Capital Gains (LTCG) from Assets Other Than Specified Assets: The tax rate is 20%.

• Income by Way of Long-Term Capital Gains from Specified Assets: The tax rate is 10%.

Section 115C: Definitions

1. Investment Income:

   • Defined as any income derived from a foreign exchange asset.

2. Specified Asset:

   • Includes the following:

     • (i) Shares in an Indian company.

     • (ii) Debentures issued by an Indian company which is not a private company as defined in the Companies Act, 1956.

     • (iii) Deposits with an Indian company which is not a private company as defined in the Companies Act, 1956.

     • (iv) Any security of the Central Government as defined in clause (2) of section 2 of the Public Debt Act, 1944.

     • (v) Such other assets as the Central Government may specify by notification in the Official Gazette.

3. Long-Term Capital Gains:

   • Income chargeable under the head “Capital Gains” relating to a capital asset, being a foreign exchange asset which is not a short-term capital asset.

4. Foreign Exchange Asset:

   • Any specified asset acquired, purchased with, or subscribed to in convertible foreign exchange.

5. Convertible Foreign Exchange:

   • Foreign exchange treated by the Reserve Bank of India as convertible for the purposes of the Foreign Exchange Management Act, 1999, and any related rules.

Section 115G: Return of Income

According to Section 115G, it is not necessary for an NRI to furnish a return of income under sub-section (1) of Section 139 if:

• (a) The total income during the previous year consists only of investment income or income by way of long-term capital gains or both.

• (b) Tax deductible at source under the provisions of Chapter XVII-B has been deducted from such income.

For more detailed information, you can refer to the Income Tax Department of India’s website.