Section 217 — Application of benefits under sections 212 to 216
Old Act equivalent: Section 115H of IT Act 1961 Sub-part: E—Special provisions relating to non-residents and foreign companies
Statutory Text
- (1) 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 as sessable, to the effect that provisions of sections 212 to 216 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 216 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. (2) A non-resident Indian may choose not to be governed by the provisions of sections 212 to 216 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 216 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. Tax on business income of Offshore Banking Units or International Financial Services Centre unit.
Provisos
None.
Explanations
None.
Tables
None.
Key Structure
- Applies to: Non-resident Indian who becomes resident in a subsequent year.
- Conditions: Assets acquired when non-resident; benefits under sections 212-216 continue if option exercised along with return of income.
- Time limits: Option to be exercised along with return of income for the year of becoming resident.
- Monetary limits: None.
- Exceptions: Benefits continue until assets transferred or converted to money.
Cross-References
Amendment Notes
None noted from the extracted pages.