Income Tax Act 2025: Section 212 for Tax Year 2025-26

Section 212 of the Income Tax Act 2025 defines key terms, including “foreign exchange asset,” “investment income,” “long-term capital gains,” and “non-resident Indian.”

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Interpretation

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

In sections 213 to 218,—

(a) “foreign exchange asset” means any specified asset which the assessee has acquired or purchased with, or subscribed to in, convertible foreign exchange;

(b) “investment income” means any income derived from a foreign exchange asset;

(c) “long-term capital gains” means income chargeable under the head “Capital gains” relating to a capital asset, being a foreign exchange asset which is not a short-term capital asset;

(d) “non-resident Indian” means an individual, who is not a resident and is—
(i) a citizen of India; or
(ii) a person of Indian origin;

(e) “specified asset” means any of the following assets:—
(i) shares in an Indian company; or
(ii) debentures issued by an Indian company which is not a private company as defined in the Companies Act, 2013; or
(iii) deposits with an Indian company which is not a private company as defined in the Companies Act, 2013; or
(iv) any security of the Central Government as defined in section 2(c) of the Public Debt Act, 1944; or
(v) such other assets as the Central Government may specify in this behalf by notification.


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