Section 217
Section 217: continuing or opting out of the NRI investment income regime
Section 217 gives a non-resident Indian control over whether the special provisions in sections 212 to 216 keep applying to them - either continuing the benefit after becoming a resident, or opting out for a particular year even while still an NRI.
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.
Continuing the benefit after becoming resident
Where a non-resident Indian, in a later tax year, becomes assessable as a resident of India, they may continue to benefit from sections 212 to 216 by furnishing a written declaration to the Assessing Officer along with the return of income under section 263 for that later year, stating that sections 212 to 216 should continue to apply to investment income from any foreign exchange asset referred to in section 212(e), other than shares in an Indian company.
If such a declaration is made, sections 212 to 216 continue to apply to that income for that tax year and every subsequent tax year, until the asset is transferred or converted (other than by transfer) into money.
Choosing not to be governed by sections 212 to 216
A non-resident Indian may instead choose not to be governed by sections 212 to 216 for any tax year, by declaring this in the return of income under section 263 for that year.
If this election is made, sections 212 to 216 do not apply to that person for that tax year, and total income for that year is computed and taxed under the Act's other, general provisions.
Frequently asked questions
Can an NRI keep this special tax treatment after becoming a resident?
Yes - by filing a written declaration with the return of income for the year they become assessable as resident, an NRI can continue sections 212 to 216 applying to investment income from foreign exchange assets (other than Indian company shares) until those assets are sold or converted into money.
Can an NRI opt out of this regime for a particular year?
Yes - by declaring the election in the return of income for that year, after which the general provisions of the Act apply to compute and tax that year's income instead of sections 212 to 216.
Related sections
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Get help deciding whether to continue or exit this NRI regimeLast updated 9 September 2026