d.The income from foreign exchange
assets (called investment income) and long-term capital gains arising on
transfer of any such asset will constitute a separate block of income and
charged to income-tax at a flat rate of 10% by way of income-tax. If the
non-resident Indian has any other income in India, such other income will
constitute as an altogether separate block of income and charged to tax
as if such other income were the total income. The aggregate of income-tax
so calculated in respect of the said two blocks of income will be the tax
payable for the relevant assessment year
e.The long-term capital gains arising
from the transfer of any foreign exchange asset will be exempt from tax
to the extent the net proceeds realised on transfer are re-invested or
re-deposited within six months after the date of such transfer in any specified
assets However, where the new asset is transferred or converted (otherwise
than by transfer) into money within a period of three years of its acquisition,
the capital gains arising from the transfer of the original asset which
has been exempted from tax shall be deemed to be the long-term capital
gains of the previous year in which the new asset is transferred or converted
into money
f.A non-resident Indian has the option
to claim that in respect to any particular assessment year the special
provisions relating to taxation of "investment income "
and "long-term capital gains"
under which the tax on such income is to be charged at a flat rate should
not apply to him. Such option can be exercised by furnishing his return
of income for that assessment year u/s. 139 declaring therein that the
flat rate should not apply to him. In cases where such option is exercised
in respect of any assessment year, the whole of the total income of that
assessment year will be charged to tax under the general provisions of
the Income-tax Act
g.A non-resident Indian who becomes
a resident in any subsequent year has the option to claim that the special
provisions of Chapter XII-A shall continue to apply to him in relation
to income derived from foreign exchange asset ( other than shares in Indian
companies ) for that assessment year and for every subsequent assessment
year until the transfer or conversion of such assets into money. Such option
can be exercised by furnishing a declaration in writing to that effect
along with his return of income for that assessment year.
h.A non-resident Indian having only
investment income or income by way of long-term capital gains arising from
the transfer of any foreign exchange asset or both need not file the return
of his income if the tax deductible from such income has been correctly
deducted at source. However, it is permissible for him to opt to submit
the return of income and claim the refund due to him.
|
