Provisions of Section115A(1)a & Provisions of Cahpter XII A i.e Sections 115C to I-NRI Individuals
This query is : Resolved
09 July 2022
Sir
NRI individual opts not to avail special scheme of provisions contained in Sections 115C to Sections 115H by not availing it under Section 115I and files of IT Return u/s 139(1) i.e with in due date.
He has interest income from Bank deposits & Post Office deposits. Deposits were made in Indian Rs. Under that situation following query arise.
1. Whether interest on deposits in Bank and Post office are covered in definition of ' Interest received from Govt or Indian concern on moneys borrowed by Govt or the Indian Concern in foreign currency , as given in Section 115A(1)(a) or not covered. ?
OR
2-- Section 115 A (1) (a) will not be attracted at all , since he has exercised option under section 115I to not to avail Scheme of sections 115C to Sections 115 H as provided in Chapter XIIA of Itax i,e Special Provisions relating to certain incomes of NRI. ?
3. Will he be taxed on interest income from Bank Deposits / Post Office interest @ 20% ?
OR
4. He will be taxed as per slab rates applicable to resident individuals becoz he exercised option under section 115 (I) by not availing special scheme available for NRI certain incomes. ?
5. Whether by not availing scheme from sections 115C to Section 115H does NRI compulsorily falls in Section 115AQ(1)(a) OR not.
Please clear this path on above points.
NRI individual opts not to avail special scheme of provisions contained in Sections 115C to Sections 115H by not availing it under Section 115I and files of IT Return u/s 139(1) i.e with in due date.
He has interest income from Bank deposits & Post Office deposits. Deposits were made in Indian Rs. Under that situation following query arise.
1. Whether interest on deposits in Bank and Post office are covered in definition of ' Interest received from Govt or Indian concern on moneys borrowed by Govt or the Indian Concern in foreign currency , as given in Section 115A(1)(a) or not covered. ?
OR
2-- Section 115 A (1) (a) will not be attracted at all , since he has exercised option under section 115I to not to avail Scheme of sections 115C to Sections 115 H as provided in Chapter XIIA of Itax i,e Special Provisions relating to certain incomes of NRI. ?
3. Will he be taxed on interest income from Bank Deposits / Post Office interest @ 20% ?
OR
4. He will be taxed as per slab rates applicable to resident individuals becoz he exercised option under section 115 (I) by not availing special scheme available for NRI certain incomes. ?
5. Whether by not availing scheme from sections 115C to Section 115H does NRI compulsorily falls in Section 115AQ(1)(a) OR not.
Please clear this path on above points.
10 July 2022
1 Not covered.
2 yes.
3 and 4 slab rates applicable.
2 yes.
3 and 4 slab rates applicable.
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11 July 2022
Thank you Sir. "Guru in need is Guru in Deed."
Sir you did not say on point 5. Can I draw inference that these two provisions are different set of situations. Section 115A(1)(a) refers to specified investments done in Foreign Currency and done with specific way. Whereas Section 115C to Section 115H is also specific investments done by individuals in Foreign Convertible currency only. But interest / accrued interest credited to NRI in his Indian Rs bank deposits / NRO deposits are not covered under both schemes once NRI opts Section 115 I in any assessment year while filing his ITR even if TDS is deducted u/s 195. Can you please be kind to guide if it is correct OR not correct.
Sir you did not say on point 5. Can I draw inference that these two provisions are different set of situations. Section 115A(1)(a) refers to specified investments done in Foreign Currency and done with specific way. Whereas Section 115C to Section 115H is also specific investments done by individuals in Foreign Convertible currency only. But interest / accrued interest credited to NRI in his Indian Rs bank deposits / NRO deposits are not covered under both schemes once NRI opts Section 115 I in any assessment year while filing his ITR even if TDS is deducted u/s 195. Can you please be kind to guide if it is correct OR not correct.
11 July 2022
Yes you are right.
It's not income from foreign currency investments.
It's not income from foreign currency investments.
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11 July 2022
you are welcome..............
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