T20: NRI – Incomes exempt from Tax

Following incomes are exempt from tax in the hands of a Non-resident Indian (NRI):-

  • Interest on notified savings certificates issued before 01-06-2002 by the Central Government if it is subscribed in convertible foreign exchange remitted from a country outside India [section 10(4B)]
  • Interest on notified bonds (notified prior to 01-06-2002) purchased in foreign exchange (subject to certain conditions) [section 10(15)(iiad)​]​
  • Interest on bonds or securities notified before 01-06-2002 by the Central Government including premium on redemption of such bonds [Section 10(4)(i)]
  • Interest on money standing to the credit in a Non-resident (External) account in India [Section 10(4)(ii)]
  • Interest on Rupee Denominated Bonds (as referred to in Section 194LC) issued outside India during the period 17-09-2018 to 31-03-2019 by an Indian company/business trust [Section 10(4C)]
  • Income accrued or arisen or received by specified fund which is attributable to units held by a non-resident (not being a PE in India) or to the investment division of offshore banking unit (subject to certain conditions) [Section 10(4D)]
  • Transfer of non-deliverable forward contracts or offshore derivative instruments or over-the-counter derivatives, entered into with an offshore banking unit of IFSC which commenced operations on or before the 31st March, 2024 and fulfils prescribed conditions [Section 10(4E)]
  • Income on account of leasing of aircraft or a ship in a previous year, paid by a unit of an IFSC unit as referred to in Section 80L(1A), if unit has commenced operations on or before the 31st March 2024 [Section 10(4F)]
  • Note: See provisions of section 10 for more
  • For more details refer: https://www.incometaxindia.gov.in/pages/i-am/non-resident.aspx

Leave a Reply