Section 115E → Section 127
Tax on investment income and long-term capital gains (NRIs)
Quick Answer
Section 115E of the Income Tax Act, 1961 (Tax on investment income and long-term capital gains (NRIs)) corresponds to Section 127 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 115E
Provision Summary
Provides a concessional flat rate of 20% on investment income and 10% on LTCG from specified foreign exchange assets for Non-Resident Indians.
Sec 127
Provision Summary
Retained. Preserves the incentive structure for NRIs to invest in India using foreign currency.
Key Changes & Highlights
- No major change. Integrated deeply with FEMA definitions.
Related Sections
Frequently Asked Questions
What does Section 115E of the Income Tax Act 1961 deal with?
Section 115E (Tax on investment income and long-term capital gains (NRIs)) Provides a concessional flat rate of 20% on investment income and 10% on LTCG from specified foreign exchange assets for Non-Resident Indians.
What is the new section number for Section 115E under the Direct Tax Code 2025?
Section 115E of the ITA 1961 maps to Section 127 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 115E under the new tax code?
Section 115E is marked as "Retained" with status "Active". Impact: High - Very commonly used by the Indian diaspora.
What are the key changes to Section 115E under DTC 2025?
No major change. Integrated deeply with FEMA definitions.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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