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Here are the updated special tax rate provisions applicable to Non-Resident Indians (NRIs) under various sections of the Income-tax Act, 1961:

Long Term Capital Gains (LTCG)

1. Section 112(1)(c):

   • Long term capital gains (LTCG) arising from the transfer of a capital asset, being unlisted securities, calculated without the benefit of indexation: 10%.

   • Concessional rate for LTCG arising from the transfer of listed securities, units, or zero coupon bonds, without the benefit of indexation. Note: If the transfer occurs after July 10, 2014, this concessional rate is not available for LTCG arising from the transfer of units: 10%.

2. Section 112A:

   • The Finance Act, 2018 withdraws the exemption under Section 10(38) and levies tax on LTCG arising from the transfer of long-term capital assets, such as listed equity shares, units of equity-oriented funds, or units of business trusts. The tax is levied on LTCG exceeding Rs. 1 lakh at the rate of 10%, computed without the first and second proviso to Section 48.

Short Term Capital Gains (STCG)

1. Section 111A:

   • Concessional tax rate for STCG arising from the transfer of equity shares or units of an equity-oriented fund, or a unit of a business trust, where securities transaction tax is chargeable. This concessional rate does not apply to any income arising from the transfer of units of a business trust acquired in consideration of a transfer referred to in Section 47(xvii): 15%.

Other Income and Tax Rates for NRIs

1. Section 115A:

   • Dividends: 20%.

   • Interest received from Government or an Indian concern on monies borrowed or debt incurred in foreign currency: 20%.

   • Interest from notified Infrastructure Debt Fund as referred to in Section 10(47): 5%.

   • Interest referred to in Section 194LC: 5% or 4%.

   • Distributed income being interest referred to in Section 194LBA: 5%, 10%, or 30%.

   • Interest received from business trusts, being of the nature referred to in Section 10(23FC), by its unit holders as referred to in Section 194LBA (subject to certain conditions): 5%.

   • Income in respect of units purchased in foreign currency [specified under Section 10(23D) or of UTI]: 20%.

   • Income by way of royalty or fees for technical services (FTS) (other than income referred to in Section 44DA) received in pursuance of an agreement made after 31-03-1976: 25%.

2. Section 115AB:

   • Income of an overseas financial organization on transfer of units purchased in foreign currency being LTCG: 10%.

3. Section 115AC:

   • Income from bonds or global depository receipts (GDRs) of a public sector company sold by the Government and purchased in foreign currency or LTCG arising from their transfer: 10%.

4. Section 115AD:

   • STCG earned by Foreign Institutional Investors (FIIs) as referred to in Section 111A: 15%.

   • Any other STCG earned by FIIs (other than as referred to in Section 111A): 30%.

   • LTCG earned by FIIs: 10%.

   • Interest referred to in Section 194LD earned by FIIs: 5%.

   • Other income earned by FIIs: 20% for FIIs & 10% for specified funds.

5. Section 115BBA:

   • Income of a non-resident foreign citizen sportsman for participation in any game in India or received by way of advertisement or for contribution of articles relating to any game or sport in India or income of a non-resident sports association by way of guarantee money: 20%.

   • Income of non-resident foreign citizens (being an entertainer) for performance in India: 20%.

6. Section 115E:

   • Income from foreign exchange assets of non-resident Indians: 20%.

   • LTCG from the transfer of foreign exchange assets by non-resident Indians: 10%.

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