Capital Gain Tax For The NRIs

A Long Term Capital Gain arising on sale of listed securities acquired after 1st March 2003 and before 1st March 2004 will be completely exempt from income-tax. This will then be reviewed next year and the concession may be extended.

Section 285BA: Filing of information in respect of certain transactions:

Rule 114 -B of the Income Tax Rules specifies certain kinds of transactions. These are:

  1. Sale or purchase of any immovable property valued at Rs.5 lakhs or more;
  2. Sale or purchase of a motor vehicle (but not a two-wheeler);
  3. A time deposit exceeding Rs.50,000/- with the Bank;
  4. A deposit exceeding Rs.50,000/- with the Post Office Savings Bank;
  5. Sale or purchase of securities of more than Rs.10 lakhs;
  6. Opening an account with the Bank;
  7. Making an application for a telephone connection or a cellular telephone connection;
  8. Payments to hotels and restaurants of more than Rs.25,000/- at one time;
  9. Purchase of an international airline ticket for more than Rs.25,000/- at one time.

Now, under the new Section, 285BA, a list of such transactions will have to be furnished to the Income Tax department.

Section 115G provides that if the total income of non-resident Indian consists of investment income or long term capital gains and the tax has already been deducted under the provisions of Chapter XVIIB, then he need not furnish an income tax return under Section 139(1)

However, if the payer has defaulted in deducting tax at source; the non-resident Indian is liable to file his income tax return and pay tax on.