Special Provisions for NRIs — A Separate Chapter. A Different Calculation.
Advisory on the special taxation regime available to non-resident Indians on investment income and capital gains from specified foreign exchange assets.
Book Free ConsultationThe Income-tax Act contains a distinct set of provisions dealing with non-resident Indians, providing for taxation of investment income and long-term capital gains from specified foreign exchange assets at prescribed rates, along with related conditions on filing and continuation of the regime.
At N D Savla & Associates, we assess whether these provisions apply to a client's holdings, whether opting into or out of the regime produces a better outcome, and what conditions must be satisfied to continue relying on it.
This is a genuinely optional area in parts, and the better answer differs between clients. Someone with a small portfolio and available deductions may fare better under the normal computation, while another holding substantial specified assets may not. We compute both before recommending a position.
Our Special Provisions Advisory
Applicability Assessment
Determination of whether the special provisions apply to the client and their assets.
Specified Asset Review
Identification of holdings that qualify as foreign exchange assets under the provisions.
Comparative Tax Computation
Computation under the special regime and under normal provisions to compare outcomes.
Capital Gains Treatment
Analysis of long-term capital gains on specified assets and available reinvestment relief.
Filing Exemption Review
Assessment of the conditions under which return filing obligations may be relaxed.
Continuation After Status Change
Advice on continuing the regime after the person becomes a resident, where permitted.
TDS Rate Coordination
Coordination with deductors so tax is deducted consistently with the position adopted.
Return Filing Under the Regime
Preparation and filing of the return reflecting the chosen treatment.
Our How We Apply the Special Provisions
Status & Asset Mapping
We confirm non-resident status and map the client's Indian holdings and how they were acquired.
Qualification Testing
Assets are tested against the definition of specified foreign exchange assets.
Dual Computation
Tax is computed under both the special regime and the normal provisions.
Position Selection
The preferable position is selected with the client and its conditions are explained.
Implementation & Filing
The position is implemented with deductors and reflected in the return of income.
Why It Matters
Frequently Asked Questions
Holding Indian investments acquired in foreign exchange?
Share your portfolio and acquisition details — we'll compute both regimes and recommend the better position.
