Section 115E provides for the levy of income tax on the investment income and long-term capital gains of a non-resident Indian. It is provided that if the total income of a non-resident Indian consists only of investment income or income by way of long-term capital gains relating to long-term foreign exchange assets, then income tax would be payable on the long-term capital gains @ 10% and @ 20% on investment income.
Thus, as per Section 115E income tax 10% only would be charged in respect of long-term capital gains arising any of the assets mentioned in “specified assets”. However, the long- term capital gains on non-specified assets, like property, land, jewellery, etc. would be charged @ 20%.
I.T. on short-term capital gains on equities liable to S.T.T. would be 15% as per Section 115 AD.