Section 115H → Section 130
Benefit under Chapter XII-A to be available in certain cases even after the assessee becomes resident
Quick Answer
Section 115H of the Income Tax Act, 1961 (Benefit under Chapter XII-A to be available in certain cases even after the assessee becomes resident) corresponds to Section 130 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 115H
Section 115H of the 1961 Act sets out the rules on benefit under chapter XII-A to be available in certain cases even after the assessee becomes resident. Allows returning NRIs to continue availing the concessional 20%/10% tax rates on their foreign exchange assets even after they become residents in India, until the asset is converted to rupees.
The new code maps this to Section 130: the provision is retained and renumbered as Section 130 of the Income-tax Act, 2025, applying from 1st April 2026. Retained verbatim. Provides a soft landing for NRIs moving back to India permanently.
On the ground, changes to Section 115H carry a High impact. Crucial for Returning Indians (RNOR status).
Sec 115H
Provision Summary
Allows returning NRIs to continue availing the concessional 20%/10% tax rates on their foreign exchange assets even after they become residents in India, until the asset is converted to rupees.
Sec 130
Provision Summary
Retained verbatim. Provides a soft landing for NRIs moving back to India permanently.
Key Changes & Highlights
- Declaration must be explicitly filed along with the ITR.
Related Sections
Frequently Asked Questions
What does Section 115H of the Income Tax Act 1961 deal with?
Section 115H of the Income Tax Act, 1961 covers benefit under chapter XII-A to be available in certain cases even after the assessee becomes resident. Allows returning NRIs to continue availing the concessional 20%/10% tax rates on their foreign exchange assets even after they become residents in India, until the asset is converted to rupees.
Where does Section 115H of the ITA 1961 go under the Income-tax Act, 2025?
Section 115H of the Income Tax Act, 1961 maps to Section 130 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained verbatim. Provides a soft landing for NRIs moving back to India permanently.
Why does the change to Section 115H matter for taxpayers?
The transition impact for Section 115H is rated High. Crucial for Returning Indians (RNOR status).
What are the key changes to Section 115H under the Income-tax Act, 2025?
Declaration must be explicitly filed along with the ITR. These points are specific to Section 115H (Benefit under Chapter XII-A to be available in certain cases even after the assessee becomes resident).
Disclaimer: This mapping of Section 115H (Benefit under Chapter XII-A to be available in certain cases even after the assessee becomes resident) to Section 130 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115H is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
Need professional help on Section 115H?
Compare trusted providers — both offer CA services ready for the Income-tax Act, 2025.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?