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 Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
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 (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.
What is the new section number for Section 115H under the Direct Tax Code 2025?
Section 115H of the ITA 1961 maps to Section 130 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 115H under the new tax code?
Section 115H is marked as "Retained" with status "Active". Impact: High - Crucial for Returning Indians (RNOR status).
What are the key changes to Section 115H under DTC 2025?
Declaration must be explicitly filed along with the ITR.
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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