What are the different rates of tax applicable for NRIs?
Depending upon the kind of income, the tax rate will vary as under: • Long Term Capital Gains: On assets other than specified assets @ 20% (with indexation benefits).In case the gains arise from transfer of listed securities or unit or zero coupon bond, there is an option to be taxed @ 10% without indexation benefits. Long term Capital Gains arising on sale of listed equity shares and units of an equity oriented fund are exempt from tax with effect from1.10.2004 • Short Term Capital Gains: Such gains are taxable as per the normal rates of Income Tax applicable to the total income of the NRI. However, short term Capital Gains arising on sale of listed equity shares and units of an equity oriented fund is liable to tax @ 10%. • Dividends (other than dividends from domestic companies) and Interest income: 20% of gross amount. • Dividends on GDRs and Interest on Foreign Currency Convertible Bonds: 10% of gross amount. • Long Term capital gains from the transfer of GDR or FCCBs: 10% When th
