Section 115-I of ITA, 1961 : Section 115-I: Chapter Not To Apply If The Assessee So Chooses

Explanation using Example

Imagine Priya, a non-resident Indian (NRI), who works in the United States. For the financial year 2022-2023, she has income from investments in India that are eligible for taxation under a special chapter for NRIs in the Income-tax Act, 1961. However, Priya realizes that if she opts for the special chapter, her tax liability will be higher than if she were taxed under the regular provisions. Before the due date for filing her tax returns, she decides to submit her return of income under section 139, explicitly stating that she does not want the special NRI chapter to apply to her for that year. By doing so, Priya's income will be taxed according to the standard tax rates and rules, which in her case results in a lower tax liability for the year 2022-2023.