SPECIAL PROVISIONS RELATING TO NON RESIDENTS
Chapter XIIA of the Income Tax Act deals with special provisions relating to certain incomes of non-residents. Sec. 115D deals with special provisions regarding computation of investment income of NRIs. Section 115E relates to investments income and long term capital gains of NRIs, such income being taxed at concessional flat rates.
As per section 115F, capital gain is not chargeable on transfer of foreign exchange assets under certain circumstances. The NRIs need not file their return of income if their total income consist only of investment income or long term capital gains or both and proper tax has been deducted from this income(Sec. 115G). Benefits under this chapter are available even after the assessee becomes a resident (Sec.115H). The provisions of this chapter would not apply if the assessee so chooses (Sec. 115I).