Taxation of Offshore Banking Units and residence-triggered continuation or opt-out of foreign investment income benefits. A person who ceases to be a non-resident and becomes resident may preserve the benefits of the specified foreign investment income provisions by declaring this in the return; those provisions continue to apply to qualifying foreign exchange asset income until transfer or conversion, unless the person elects to opt out for a tax year, in which case total income is computed under other Act provisions. Separately, where total income includes specified income of Offshore Banking Units or IFSC units, that specified income is taxed at a flat rate while the balance is taxed at rates in force, and the aggregate liability is the combination of those computations.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxation of Offshore Banking Units and residence-triggered continuation or opt-out of foreign investment income benefits.
A person who ceases to be a non-resident and becomes resident may preserve the benefits of the specified foreign investment income provisions by declaring this in the return; those provisions continue to apply to qualifying foreign exchange asset income until transfer or conversion, unless the person elects to opt out for a tax year, in which case total income is computed under other Act provisions. Separately, where total income includes specified income of Offshore Banking Units or IFSC units, that specified income is taxed at a flat rate while the balance is taxed at rates in force, and the aggregate liability is the combination of those computations.
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