Section 115H of ITA, 1961 : Section 115H: Benefit Under Chapter To Be Available In Certain Cases Even After The Assessee Become Resident

Explanation using Example

Imagine Mr. Sharma, who was a non-resident Indian working in Dubai, had invested in certain Indian equities that qualify as foreign exchange assets. In the financial year 2023-2024, Mr. Sharma decides to return to India and becomes a resident for tax purposes. He is concerned that his investment income from these equities, which was previously taxed at a concessional rate due to his non-resident status, will now be taxed at a higher rate.

Upon consulting his tax advisor, he learns about Section 115H of the Income-tax Act, 1961. Mr. Sharma then files his tax return for the assessment year 2024-2025 and includes a written declaration stating that he wishes the special provisions for non-resident Indians to continue to apply to his investment income from the specified foreign exchange assets. By doing this, Mr. Sharma can benefit from the continued application of the concessional tax treatment for his investment income until he sells or converts these assets into money.