§ 214
Chapter XIII — Determination Of Tax In Special Cases

Tax on investment income and long-term capital gains

Income-tax Act, 2025

Non-resident Indians are subject to income tax on specific types of income. This includes income from investments and long-term capital gains on certain assets. The tax rates are as follows:

  • 20% on income from investments
  • 12.5% on long-term capital gains from specified assets
The tax is computed based on these rates and applied to the corresponding income.

📜 Official text of the section +
214. The income-tax payable on the total income of an assessee, being a non- resident Indian, which includes income specified in column B of the Table below, shall be the aggregate of income-tax computed at the rate specified in the column C applied on the corresponding income specified in column B. TABLE Sl. No. Income Rate of Income- tax payable A B C 1. Income from investment. 20% 2. Income from long-term capital gains on specified asset. 12.5% 3. Total income as reduced by income referred to against serial numbers 1 and 2. Rates in force. Capital gains on transfer of foreign exchange assets not to be charged in certain cases.

Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.