Section 212
Section 212: definitions for the NRI investment income provisions
Section 212 sets out the definitions that apply throughout sections 213 to 218 - the special Part of this Chapter dealing with how a non-resident Indian's investment income and long-term capital gains from foreign-currency investments are taxed.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
Defined terms
For the purposes of sections 213 to 218, the following definitions apply:
| Term | Meaning |
|---|---|
| "Foreign exchange asset" | Any specified asset which the assessee has acquired or purchased with, or subscribed to in, convertible foreign exchange |
| "Investment income" | Any income derived from a foreign exchange asset |
| "Long-term capital gains" (for this Part) | Income chargeable under the head "Capital gains" relating to a capital asset that is a foreign exchange asset which is not a short-term capital asset |
| "Non-resident Indian" | An individual who is not a resident and who is either (i) a citizen of India, or (ii) a person of Indian origin |
What counts as a "specified asset"
A "specified asset" is any of the following:
- Shares in an Indian company;
- Debentures issued by an Indian company that is not a private company under the Companies Act, 2013;
- Deposits with an Indian company that is not a private company under the Companies Act, 2013;
- Any security of the Central Government as defined in section 2(f) of the Government Securities Act, 2006; or
- Any other asset the Central Government specifies by notification.
Frequently asked questions
Which sections does Section 212 apply to?
Its definitions govern sections 213 to 218 - the Act's special provisions on NRI investment income and related long-term capital gains.
Do shares in a private Indian company count as a specified asset?
No - the definition of "specified asset" excludes debentures of, and deposits with, a private company under the Companies Act, 2013 (though shares in an Indian company generally do qualify).
Related sections
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Get help understanding your NRI investment income tax treatmentLast updated 9 September 2026