1. An Indian citizen or a foreign citizen of Indian origin who stays abroad for employment/carrying on business or vocation or under circumstances indicating an intention for an uncertain duration of stay abroad is a NON-RESIDENT INDIAN (NRI). (Those who stay abroad on business visit, medical treatment, study or such other purposes which do not indicate an intention to stay there for an indefinite period will not be considered as NRI's.)
2. Students who go abroad for studies with an intention to stay there for an uncertain period and who stayed abroad for more than 180 days in the preceding financial year will be treated as Non Resident Indians.
Tax Rates* under the Act
TDS Rate* under the Act
Residents
NRI's / PIO's
FII's
NRI's / PIO's / other Non FII non-residents
Short Term Capital Gain
Units of a non equity oriented fund
Taxable at normal rates of tax applicable to the assessee
30% without indexation benefit (u/s 115AD)
NIL
30% for non residents non corporate, 40% for non resident corporate, (u/s 195)
Units of an equity oriented fund
15% on redemption of Units where STT is payable on redemption (u/s 111A)
Nil
Long Term Capital Gain **
10% without indexation, or 20% with indexation, whichever is lower (u/s 112)
10% with no indexation benefit (u/s 115AD)
20% for non residents (u/s 195)
Exempt in case of redemption of Units where STT is payable on redemption [u/s 10(38)]