Exemptions Investment Income NRI

Special Exemptions In Respect Of Investment Income of Non Resident Indians

Following Investment Income of a Non Resident are fully exempt:

· The entire income generated from investing in units of UTI is exempt provided the investment is made out of amount remitted from abroad or from their Non Residents (External) Account.

· Income arising from investment in notified saving certificates is fully exempt provided the certificates are subscribed to in convertible foreign exchange remitted from a foreign country in accordance with Foreign Exchange Regulation Act. For this purpose NSC VI and VII are notified.

· Income from NRI Bonds 1988 and NRI Bonds (second series) is exempt from tax. This is available to a Non Resident if he becomes a resident in India. Even if such bonds are gifted to a resident he also enjoys such privilege.


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