Tax on business income of Offshore Banking Units or International Financial Services Centre unit

218. Where the total income of an assessee includes income of the nature referred to in section 147(3), the aggregate of income-tax payable by the assessee shall be the aggregate of income-tax computed on the income specified in column B of the 36. Sections 217 and 218 substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to their substitution, sections 217 and 218 read as under : “217. Benefit under Chapter to be available in certain cases even after assessee becomes resi - dent.—Where a non-resident Indian in any tax year,— ( a) becomes assessable as a resident in India in respect of total income in a subsequent year; and ( b) furnishes a declaration in writing to the Assessing Officer along with his return of income under section 263 for the tax year for which he is so assessable, to the effect that provisions of sections 212 to 218 shall continue to apply to him in relation to the investment income derived from any foreign exchange asset referred to in section 212(e) other than shares in an Indian company, then the provisions of sections 212 to 218 shall continue to apply in relation to such income for that tax year and every subsequent tax year until the transfer or conversion (otherwise than by transfer) of such assets into money. 218. Chapter not to apply if the assessee so chooses.—A non-resident Indian may choose not to be governed by the provisions of sections 212 to 217 for any tax year by declaring it in his return of income under section 263 for such tax year, and if he does so,— ( a) the provisions of sections 212 to 217 shall not apply to him for that tax year, and ( b) his total income for that tax year shall be computed and charged to tax according to the other provisions of this Act.” Table below at the rate specified in the corresponding entry in column C of the said Table: TABLE Sl. No. Income Rate of income-tax payable A B C 1. Income referred to in section 147(3) 15% 2. Total income as reduced by income referred to in Sl. No. (1) Rates in force.] Conversion of an Indian branch of foreign company into subsidiary Indian company.