Following provisions of the Act are applicable to certain incomes of Non Resident Indian:

 

1. Section 115D: Special provision for computation of total income of non-residents

2. Section 115E: Tax on investment income and long-term capital gains

3. Section 115F: Capital gains on transfer of foreign exchange assets (not to be charged in certain cases)

4. Section 115G: Return of income (not to be filed in certain cases)

5. Section 115H: Benefit under Chapter to be available in certain cases even after the assesse becomes resident

6. Section 115-I: Chapter not to apply if the assesse so chooses

 

How can a NRI policyholder avoid double taxation?

Double taxation occurs when income tax is paid twice, (i.e., in the country of residence and in the country where the income is earned) on the same source of earned income. To avoid paying double taxation, NRIs can seek relief under the Double Tax Avoidance Agreement (DTAA) (wherever available) between the two countries, which is an arrangement between the governments of two countries, prescribing the country in which income earned from a foreign country will be taxed. To avail this benefit, you need to gather all the necessary documents of tax paid in India, as proof. Also if there is any benefit under DTAA, no withholding tax will be deducted if customer submits valid Form 10F and valid Tax Residency Certificate (TRC) issued by Revenue Department of Foreign Country in which customer is residing