Section 214
Section 214: tax on NRI investment income and long-term capital gains
Section 214 fixes the flat tax rates that apply to a non-resident Indian's investment income and long-term capital gains, as those terms are defined in Section 212.
The rates
Where a non-resident Indian's total income includes the income below, tax is computed at these flat rates on that income, with the rest of the total income taxed at the rates otherwise in force:
| Income | Rate of income-tax payable |
|---|---|
| Income from investment (as defined in section 212) | 20% |
| Long-term capital gains on a specified asset | 12.5% |
| Total income as reduced by the above two categories | Rates in force |
Frequently asked questions
What rate applies to an NRI's investment income under this Part?
20%, on the investment income as defined in Section 212, computed separately from the rest of total income.
What rate applies to long-term capital gains on specified assets?
12.5%, on long-term capital gains from a specified asset as defined in Section 212.
Related sections
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