24 June 2022
If NRI opts u/s 115I ( Chapter not to apply if assess so choses ) in Chapeter XIIA ( Special Provisions relating to certain income of NRI. and is to file return u/s 139(1) but has got interest income in NRO Bank a/c and is classified u/s 195 of ITax Act FOR TDS , then in such situations will he be still required to be charged tax @20% on interest income OR it can be treated as normal interest income under head ' Income from Other Sources ' ( as he opts section 115I ) and tax be calculated as per normal applicable slab rates.
In such cases where TDS is u/s 195 on interest of NRO a/c but assessee opts normal slab rates u/s 115 I , and file return u/s 139(1), will it be correct as per law
26 July 2022
Chapter XII-A contains beneficial provisions for NRI in respect of investment income (derived from foreign exchange asset), LTCG, not filing return in certain cases etc and 115-I says that assessee may choose not to be governed by provisions of said chapter (if he finds calculation under regular provisions more beneficial)
I do not see interest income from NRO account (Indian Currency account) anyway falling within purview of Chapter XII-A, whether one opts for s.115I or otherwise.
Author: Advocate Ravish Bhatt Gmail: ravishdbhatt@gmail.com Link to Linkedln Profile: https://bit.ly/3IDGfsU
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