NRI Definitions

Section 212 — - DEFINITIONS FOR NRI PROVISIONS (ss. 213-218)

Section 212 is the definitional anchor for the NRI-specific concessional regime under ss. 213-218 (substantive equivalent of 1961 ss. 115C-115I). Defines: (a) 'foreign exchange asset' -- specified asset acquired by NRI in convertible foreign exchange; (b) 'investment income' -- income from foreign exchange asset; (c) 'long-term capital gains' -- LTCG from transfer of foreign exchange asset; (d) 'specified asset' -- enumerated foreign-exchange-acquired Indian assets (typically Government securities / Indian-co debentures / equity shares / deposits with Indian banks); (e) 'non-resident Indian' -- per s. 6(13). The NRI regime grants concessional rates and reinvestment-based deferral for qualifying NRI investments in India.

Five definitions referenced throughout NRI Chapter XIII subset: (a) FOREIGN EXCHANGE ASSET = specified asset acquired by NRI in convertible foreign exchange (key element: FX-source funding); (b) INVESTMENT INCOME = income from such asset (typically dividends / interest); (c) LTCG = long-term capital gains from foreign exchange asset transfer; (d) SPECIFIED ASSET = (i) Indian-Govt securities; (ii) Indian-co debentures; (iii) Indian-co equity shares (post FA 2017 expansion); (iv) deposits with Indian banking companies / Indian-co debentures; (e) NON-RESIDENT INDIAN (NRI) = individual being a citizen of India OR person of Indian origin (PIO), who is non-resident in India. Practitioner: NRI-specific concessions applicable only to PIO / Indian-citizen NRIs; foreigners-with-no-Indian-origin not eligible.

CROSS-REFERENCES

• Sections 213-218 -- NRI substantive provisions.
• Section 6 -- Residence definition (NRI determined by non-residence).
• Section 9 -- Source-rule (Indian-source for NRI investment income).