Tax rebate for nri

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2012 If Nri is filing tax return, can rebate be claimed on tax computed/deducted as Section 115I states
" A non-resident Indian may elect not to be governed by the provisions of this Chapter for any assessment year by furnishing his return of income and his total income for that assessment year shall be computed and tax on such total income shall be charged in accordance with the other provisions of this Act."

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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31 March 2012 SECTION 115-I IS APPLICABLE ONLY IN RESPECT OF CERTAIN SPECIFIED INCOMES OF NRI DERIVED FROM INVESTMENT IN CERTAIN SPECIFIED ASSETS
CA MANOJ GUPTA
JODHPUR
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Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2012 Thank you Sir for your advice.
What I understand:
an NRI has either of the following options:
1.Special provisions apply for himself, in which case he will be charged @ 20% on investment income, 10% on long term capital gain and if there is any other income then those are chargeable as per Section 2, First schedule.
Only confusion over here is whether exemption limit applies or not and again on total income or on income after investment income and capital gains.
In this case, I believe,there will be no deductions, nor rebate will be eligible.
2.General provisions
1.If assessee file return u/s 139(1) then his entire income can be assessed based on the general provisions of the act which will also make him eligible for deductions and rebate
3 Is there any case which justifies the use of option 1 over option 2.

Any advice on the above will be valuable.

Thanks

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