What is the special tax regime available to a NRI?
A special tax regime is available for NRIs in respect of income arising from investment in specified assets purchased with convertible foreign exchange. The specified assets are as under: • Shares in an Indian company. • Debentures issued by a public limited Indian company. • Deposits with a public limited Indian company. • Securities of the Central Government. • Any other notified assets. Income from the aforesaid specified assets shall be taxable as under: • Investment income: 20% of gross amount (without any deduction or allowance against such investment income) • Long-term capital gains: 10% (without indexation) Exemption from long-term capital gains tax is available by investing the net consideration in any specified asset within a period of 6 months from the date of transfer of the capital asset.
