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Tax-Exempt Incomes for Non-Resident Indians (NRIs)

The following incomes are exempt from tax for Non-Resident Indians (NRIs) under various sections of the Income-tax Act, 1961:

1. Section 10(4B):

   • Interest on notified savings certificates issued before June 1, 2002, by the Central Government, if subscribed in convertible foreign exchange remitted from outside India.

2. Section 10(15)(iiad):

   • Interest on notified bonds (notified before June 1, 2002) purchased in foreign exchange, subject to certain conditions.

3. Section 10(4)(i):

   • Interest on bonds or securities notified before June 1, 2002, by the Central Government, including premium on redemption of such bonds.

4. Section 10(4)(ii):

   • Interest on money standing to the credit in a Non-Resident (External) account in India.

5. Section 10(4C):

   • Interest on Rupee Denominated Bonds (as referred to in Section 194LC) issued outside India during the period from September 17, 2018, to March 31, 2019, by an Indian company/business trust.

6. Section 10(4D):

   • Income accrued or arisen or received by specified funds attributable to units held by a non-resident (not being a Permanent Establishment in India) or to the investment division of an offshore banking unit, subject to certain conditions.

7. Section 10(4E):

   • Income from the transfer of non-deliverable forward contracts, offshore derivative instruments, or over-the-counter derivatives, entered into with an offshore banking unit of an International Financial Services Centre (IFSC) that commenced operations on or before March 31, 2024, and fulfills prescribed conditions.

8. Section 10(4F):

   • Income from leasing aircraft or ships in a previous year, paid by a unit of an IFSC unit as referred to in Section 80LA(1A), if the unit has commenced operations on or before March 31, 2024.

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