section 115 D

Hi Manohar

Answer to 1: There is no contradiction between the provisions of proviso 2 to S.48 AND S.115D(2)(a).
    
     S.115D(2)(a) clearly says that 

Where in the case of an assessee, being a non-resident Indian,—

 the gross total income consists only of investment income or income by way of long-term capital gains or both, no deduction shall be allowed to the assessee under Chapter VI-A and nothing contained in the provisions of the second proviso to section 48 shall apply to income chargeable under the head "Capital gains".

Here it seems that if the assessee is having ANY OTHER INCOME such as Salary or income under the head other sources Second proviso to Sec.48 can be applied even to the above mentioned Long Term Capital Gains.

Answer to 2: Indexation shall be allowed to the NRI on gain on sale of property if he is also having any other income such as salary or house property income or income under the head other sources or PGBP.

Answer to 3: Chapter XIIA has reference of Specified asset. Still it applies to all investments wherever it seems appropriate.