§ 213
Chapter XIII — Determination Of Tax In Special Cases
Special provision for computation of total income of non-residents
Income-tax Act, 2025
For non-resident Indians, certain deductions are not allowed when computing investment income. This applies to income from investments or long-term capital gains. The rules for deductions under Chapter VIII are modified for non-residents with such income. Key points include:
- no deductions for investment income or long-term capital gains if it's the only income
- deductions under Chapter VIII are allowed if other income is present, after reducing gross total income by investment income and long-term capital gains
📜 Official text of the section +
213. (1) No deduction in respect of any expenditure or allowance shall be allowed
under any provision of this Act in computing the investment income of a
non-resident Indian.
(2) In the case of an assessee, being a non-resident Indian, where—
( a) the gross total income consists only of investment income or income
by way of long-term capital gains or both, then no deduction shall be
allowed under Chapter VIII;
( b) the gross total income includes any income referred to in clause (a),—
( i) the gross total income shall be reduced by such income; and
( ii) the deductions under Chapter VIII shall be allowed as if the gross
total income as so reduced was the gross total income of the asses-
see.
Tax on investment income and long-term capital gains.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.