Tax on investment income and long-term capital gains.
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115E. (1) Where
the total income of an assessee, being a non-resident Indian, consists
only of investment income or income by way of long-term capital gains or both, the tax payable
by him on his total income shall be the amount of income-tax calculated on such total income at
the rate of twenty per cent of such income
28[***].
(2) Where the total income of an assessee, being a non-resident Indian
includes any income of
the nature referred to in sub-section (1), the tax payable by him on his total income shall be—
(
i)
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[the income-tax] payable by him in accordance with the provisions of sub-section
(1) on income of the nature referred to in that sub-section included in the total income;
plus
(
ii) the amount of
income-tax chargeable on the total income as reduced by the
amount of income of the nature referred to in sub-section (1), had the total income so reduced
been his total income.
The following section 115E shall be substituted for the existing section 115E by the
Finance Act, 1997, w.e.f. 1-4-1998 :
Tax
on investment income and long-term capital gains.
115E. Where the
total income of an assessee, being a non-resident Indian,includes—
(a
) any income from investment
or income from long-term capital gains of an asset
other than a specified asset;
(b
) income by way of long-term
capital gains,
the
tax payable by him shall be the aggregate of—
(i) the
amount of income-tax calculated on the income in respect of investment
income referred to in clause (a),
if any, included in the total income, at the rate of twenty per
cent;
(ii
) the amount of income-tax
calculated on the income by way of long-term capital
gains referred to in clause (b),
if any, included in the total income, at the rate of ten per cent;
and
(iii
) the amount of income-tax with which
he would have been chargeable had his
total income been reduced by the amount of income referred to in clauses (a
) and (b).