Section 213
Section 213: special provision for computing total income of non-residents
Section 213 governs how deductions interact with an NRI's investment income (as defined in Section 212) - no expense deductions are allowed against that income, and Chapter VIII deductions are computed only against the remaining, non-investment income.
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.
No deduction for expenditure or allowance
No deduction in respect of any expenditure or allowance is allowed under any provision of the Act while computing the investment income of a non-resident Indian.
Chapter VIII deduction restriction
For a non-resident Indian assessee:
- If gross total income consists only of investment income and/or long-term capital gains (as defined in section 212), no deduction is allowed under Chapter VIII.
- If gross total income includes investment income and/or such long-term capital gains among other income, the gross total income is first reduced by that income, and Chapter VIII deductions are then allowed as if the reduced amount were the gross total income.
Frequently asked questions
Can an NRI deduct expenses from investment income under this Part?
No - Section 213(1) bars any deduction for expenditure or allowance against investment income as defined in Section 212.
What happens to Chapter VIII deductions if my only income is investment income?
No Chapter VIII deduction is allowed at all, if gross total income consists solely of investment income and/or long-term capital gains under this Part.
Related sections
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Get help with your NRI investment income deductionsLast updated 9 September 2026