What are Definitions? What is Special provision for computation of total income of non-residents? Section 115C and 115D of Income Tax Act 1961
Definitions and Special provision for computation of total income of non-residents is defined under sections 115C and 115D of Income Tax Act 1961. Provisions under this Section are :
Section 115C of Income Tax Act "Definitions"
Section 115C. In this Chapter, unless the context
(b) "foreign exchange asset" means any specified asset which the assessee has acquired or purchased with, or subscribed to in, convertible foreign exchange;
(c) "investment income" means any income derived other than dividends referred to in section 115-O from a foreign exchange asset;
(d) "long-term capital gains" means 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;
(e) "non-resident Indian" means an individual, being a citizen of India or a person of Indian origin who is not a "resident".
Explanation.-A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, was born in undivided India;
(f) "specified asset" means any of the following assets, namely :-
(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 (1 of 1956);
(iii) deposits with an Indian company which is not a private company as defined in the Companies Act, 1956 (1 of 1956);
(iv) any security of the Central Government as defined in clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944);
(v) such other assets as the Central Government may specify in this behalf by notification in the Official Gazette.
Section 115D of Income Tax Act "Special provision for computation of total income of non-residents"
Section 115D. (1) No deduction in respect of any expenditure or allowance shall be allowed under any provision of this Act in computing the investment income of a non-resident Indian.
(2) Where in the case of an assessee, being a non-resident Indian,-
(a) the gross total income consists only of investment income or income by way of long-term capital gains or both, no deduction shall be allowed to the assessee under Chapter VI-A and nothing contained in the provisions of the second proviso to section 48 shall apply to income chargeable under the head "Capital gains";
(b) the gross total income includes any income referred to in clause (a), the gross total income shall be reduced by the amount of such income and the deductions under Chapter VI-A shall be allowed as if the gross total income as so reduced were the gross total income of the assessee.
What is Tax on investment income and long-term capital gains? What is the meaning of Capital gains on transfer of foreign exchange assets not to be charged in certain cases? Section 115E and 115F of Income Tax Act 1961
What is the meaning of Return of income not to be filed in certain cases? What are the Benefit under Chapter to be available in certain cases even after the assessee becomes resident? Section 115G and 115H of Income Tax Act 1961