It section 10(38)

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SUBBU

SUBBU (Querist)
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09 July 2015 KINDLY ADVISE IF a NON RESIDENT INDIAN CAN AVAIL EXEMPTION U/S 10(38) LIKE A RESIDENT.

THANKS , REGARDS

CMA Gul S

CMA Gul S (Expert)
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09 July 2015 Hi Subbu -

In case of specified capital gains (e.g. long term capital gains u/s 10(38) arising out of sale of equity shares on stock-exchange on which STT is paid and also LTCG on sale of mutual fund units which are exempt in case of all tax payers, there are certain other incomes which are exempt only in the hands of NRIs. The two most common incomes exempt in the hands of NRIs are as follows:

a.) Interest income of NRIs from NRE accounts is exempt from income tax u/s 10(4) of IT Act, 1961.

b.) Interest payable by a scheduled bank on FCNR deposits is also exempt u/s 10(15) of IT Act, 1961.