NRI tax: How to claim special tax concessions

Copyright © HT Digital Streams Limit all rights reserved. Anil posts 7 min Read 06 Jun 2025, 12:25 pm the concessions apply to income from foreign exchange assets and long-term gains on the sale of the assets. (Image: Pexel) Summary Many NRIs are not aware of the benefits of the Articles 115c and 115i of the Income Tax Act, which provides concession tax treatment on certain income. Mumbai: Non-resident Indians (NRIs) and Indian origin (PIOs) persons often maintain a financial footprint in India through stocks, deposits or other financial instruments. However, many people are not aware of the benefits of the Articles 115c and 115i of the Income Tax Act, which provides concession tax treatment on certain income. Mint explains who can claim these benefits on which assets and when. The types of income that qualify for concessions apply the concessions to two specific types of income. “The special tax provisions apply to income from foreign exchange assets such as interest, dividends, etc., or anything derived from specified currency assets. Long-term capital gains (LTCG) from the sale of currency assets are also covered,” said Hardik Mehta, Bombay Chartered Accounts. Also read: Gold Tax Window for NRIs: What Rnor means and how to use it, Laxmi Ahirwar, director at the Chartered Accountant PrPR Bhuta & Co, made it clear that NRIs cannot claim any deduction under Chapter VI-A (divisions 80C to 80U), and added that even the indexing advantage is not available. Foreign exchange assets The definition of a foreign exchange asset is strictly linked to the source of funds. ‘Specific assets obtained or purchased with or logged in, using convertible foreign exchange is classified as foreign exchange assets. These are: shares in a private or public limited Indian company, debentures issued by a public limited Indian company, deposits with a public limited Indian company, any security issued by the central government, or any other security that can issue the central government by issuing a notice, “Ahirwar explains. Mehta added: “If you transfer US dollars from your foreign bank account to your non-resident external (NRE) account, these funds are initially converted into INR before being deposited into the NRE account. Non-President (non-president (non-president Oudinary) for the preferred tax rate under the special tax provisions. Foreign exchange in India. However, Ahirwar made it clear that the shift of funds in this way does not automatically qualify for tax concessions. is from sincere inflow of foreign exchange and not converted from the Indian income. ‘ Proper documentation, such as advice on bank payouts or foreign inner overpayment certificates, maintains to comply with confidence and to claim tax treatment. is on a gross basis, and no benefits or indexing is available for the judge. on the new foreign exchange asset. “If the new asset is transferred or sold within three years of purchase, the exemption previously claimed will be taxable in the year in which the new asset is transferred or sold. Assets for £ 10 lakh and earn ltcg of £ 2 lakh on the sale. Lakh would be exempt from tax. Ensure Chartered Accountant. “If the sale of the sale is in qualifying within six months, and the assets are executed for the required period, the exemption must take place within six months of selling the sale of a proper documentation. That each subsequent reinvestment complies with the conditions specified in terms of the Revenue Tax Act.” For example, a NRI invests £ 20 lakh in shares that use funds from their NRE account. Lakh must be reinvested within six months in another qualifying foreign exchange. Timeline, assets for assets and documentation. explain. Coin.