Section 213: special provision for computing total income of non-residents

No deduction for expenditure or allowance

No deduction in respect of any expenditure or allowance is allowed under any provision of the Act while computing the investment income of a non-resident Indian.

Chapter VIII deduction restriction

For a non-resident Indian assessee:

• If gross total income consists only of investment income and/or long-term capital gains (as defined in section 212), no deduction is allowed under Chapter VIII.
• If gross total income includes investment income and/or such long-term capital gains among other income, the gross total income is first reduced by that income, and Chapter VIII deductions are then allowed as if the reduced amount were the gross total income.

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