Section 213 is the substantive equivalent of 1961 s. 115 D -- the no-deduction rule for NRI investment income from foreign exchange assets. Where NRI's investment income falls under ss. 213-218 special regime, NO Chapter VIII deductions /…
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ITA 2025 · Section 213
Section 213 — - NO DEDUCTION FOR NRI INVESTMENT INCOME
Section 213 is the substantive equivalent of 1961 s. 115D -- the no-deduction rule for NRI investment income from foreign exchange assets. Where NRI's investment income falls under ss. 213-218 special regime, NO Chapter VIII deductions / no expense / no allowance / no loss-set-off allowed.
NRI investment income (interest / dividend on foreign exchange assets) and LTCG on transfer covered by the NRI regime ss. 213-218: no Chapter VIII deductions allowed; no expenditure / allowance / loss set-off in computing such income. The trade-off: concessional rates (typically 20% / 10%) PLUS no deductions vs default rates (slab) WITH deductions. NRI must model both.
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