|The normal rate of income tax on long-term capital gains is 20%. As regards an NRI, we have discussed the detailed provisions regarding the tax on capital gains relating to foreign exchange assets. Sometimes an NRI may have investment in shares and securities, like any other resident person. It was provided in Section 112, from the A.Y. 2000-2001 that the income tax on long-term capital gains will be limited at 10% of the long-term capital gains on shares and securities as defined in Section 2(h) of the Securities Contract (Regulation) Act, 1956 and listed in recognized stock exchanges in India and units of UTI and Mutual Funds, before allowing adjustment of Cost Inflation Index for all assessees.