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NRIs Have The Option Not To Be Governed By The Special Provisions

[ Special Procedure of Assessment regarding Income of an NRI from Foreign Exchange Assets. ]

The provisions of Chapter XII-A, namely, levy of a uniform rate of income tax of 20% on the investment income of a non-resident Indian, etc. are not compulsory in the case of every non-resident Indian. Rather, Section 115-I provides that a non-resident Indian may elect not to be governed by the provisions in this chapter in any financial year. He may do so when he finds that the normal rates of income tax would mean a lower income tax liability than the uniform rate of 20%. Such a case would exist there when the total income for A.Y. 2010-2011 is upto `. 9,60,000. The average rate of income tax on such an income would be about 20%. Hence a non-resident Indian with an income of less than ` 9,60,000 would certainly like to be assessed by the normal procedure and according to the normal rates of income tax. In such a case he has to furnish to the Assessing Officer a return of income for the relevant year declaring that the provisions of Chapter XII-A would not be applicable to him for that assessment year. When the nonresident does such a thing for any assessment year the provisions of Chapter X11-A would not apply to him for that assessment year and his total income for that assessment year would be computed and tax on such total income would be charged in accordance with the other provisions of the Income Tax Act.
Special Procedure of Assessment regarding Income of an NRI from Foreign Exchange Assets
1. Special Provision Of Computation Of The Total Income Of A Non-Resident Indian
2. Who Is A Non-Resident Indian For The Purposes Of These Special Provisions?
3. Specified Foreign Exchange Assets Income From Which Is Eligible For The Special Provisions Of Assessment
4. Income Tax On Investment Income And Long-Term Capital Gains Of An NRI
5. When Is No Income Tax Payable On The Long-Term Capital Gains Of Foreign Exchange Assets?
6. A Non-Resident Indian Need Not File Any Income Tax Return In Certain Cases
7. When Does The Special Procedure Continue To Apply To A Person Even After He Becomes A Resident In India?
8. NRIs Have The Option Not To Be Governed By The Special Provisions
9. Tax Planning Guidelines For An NRI Having Income From Foreign Exchange Assets As Well As Other Income

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Tax Guide for NRI - Tax Planning, Tax Saving, Investment Guidance for Non-Resident Indians !

1. Basic Aspects Of Tax Planning For NRIs
2. How an NRI can Avoid Clubbing of his Incomes and Wealth with that of his Spouse and Children
3. The Incomes of an NRI completely Exempt from Income Tax
4. Capital Gain of an NRI could be Completely Exempt from Income Tax
5. Items completely Exempt from Wealth Tax for an NRI
6. Special Procedure of Assessment regarding Income of an NRI from Foreign Exchange Assets
7. Deductions Allowed to NRIs in the Computation of Total Income and Tax Payable
8. Procedure for the Filing of Income Tax and Wealth Tax Returns, Assessment, and Refunds
9. Gifts by NRIs to Relatives and Friends can be made fully Exempt from Gift Tax
10. FEMA and NRIs — Preliminary Aspects Analysed
11. Acquisition and Transfer of Immovable Property in India by NRIs and FEMA
12. Permissible and Prohibited Current Account Transactions in Case of NRI
13. Investment In Shares, Securities, Units And Other Activities, etc. by an NRI in India
14. Deposits in India by an NRI
15. RFC account of a Returning NRI and Investment Abroad
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