Section 217: continuing or opting out of the NRI investment income regime

Continuing the benefit after becoming resident

Where a non-resident Indian, in a later tax year, becomes assessable as a resident of India, they may continue to benefit from sections 212 to 216 by furnishing a written declaration to the Assessing Officer along with the return of income under section 263 for that later year, stating that sections 212 to 216 should continue to apply to investment income from any foreign exchange asset referred to in section 212(e), other than shares in an Indian company.

If such a declaration is made, sections 212 to 216 continue to apply to that income for that tax year and every subsequent tax year, until the asset is transferred or converted (other than by transfer) into money.

Choosing not to be governed by sections 212 to 216

A non-resident Indian may instead choose not to be governed by sections 212 to 216 for any tax year, by declaring this in the return of income under section 263 for that year.

If this election is made, sections 212 to 216 do not apply to that person for that tax year, and total income for that year is computed and taxed under the Act's other, general provisions.

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