• The article discusses the income tax implications for non-resident investors in the Indian share and securities market. Here’s a summary of key points:

    Why Non-Residents are Investing in India:

    Non-residents are attracted to the Indian share market due to the promise of higher returns compared to other global markets.

    Income Tax Slab Rates for Non-Residents:

    For non-residents, irrespective of their age, the following tax slab rates apply:

    • Up to Rs. 2,50,000: Nil
    • Rs. 2,50,000 to 5,00,000: 5%
    • Rs. 5,00,000 to 10,00,000: 20%
    • Above Rs. 10,00,000: 30%

    Surcharge and cess are applicable on the above tax rates.

    Benefits Under New Tax Regime for Non-Residents:

    Non-residents can also claim benefits under the new tax regime (Section 115BAC) with different tax slabs.

    Understanding Capital Gains in Share Investments for Non-Residents:

    • Shares held for less than 12 months are considered short-term, and those held for more than 12 months are long-term.
    • Tax rates for short-term and long-term capital gains are specified under Sections 111A and 112A.
    • Non-resident individual shareholders aren’t covered under Section 115AD, which is specifically for foreign institutional investors.

    Mandatory Tax Filing for Non-Residents:

    Non-resident individuals must file an income tax return. There is no exemption limit available, unlike resident individuals. Non-residents need to file a return even if their total income is below the basic exemption limit.


    Non-resident investors should be aware of their tax obligations when investing in the Indian share market. Understanding tax implications and complying with the Income Tax Act is crucial to avoid inadvertent non-compliances and penalties.