With a view to
attract investment by Non-resident Indians and Indian Nationals
living abroad, special provisions exist in Chapter XIIA providing
incentives in the form of reliefs and concessional tax rate as also
simplifying the tax assessment procedure for such persons.
Non-resident Indian has been defined as an individual, being a
citizen of India or a person of India origin, who is not a resident.
A person is of Indian origin if he or either of his parents or any
of his grand parents was born in undivided India. These special
provisions are dealt with in Chapter XI.
Non-resident persons have been given a special status under the
incometax law. Besides the general provisions for computation of
long-term capital gains and the tax liability thereon, contained in
section 48 and section 112,Chapter XII-A (comprising of sections
115C to 115-I) contains special provisions relating to certain
incomes of non-resident Indians (NRIs). Section 115AC makes
provision for tax on income from bonds or shares purchased in
foreign currency or capital gains arising from their transfer'.
Besides, the provisions of Section 115A have been extended to
non-residents, besides foreign companies, regarding tax on
dividends, interest on foreign currency debts and income from units
of mutual fund. |
