New Provision
Section 212, IT Act 2025
Replaces (IT Act 1961)
313 115C
Chapter
Chapter XII — Tax on Special Incomes
Effective From
1 April 2026
Statutory Text — Section 212
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; Direct Taxes Committee 3 1 3
(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(f) of the Government Securities Act, 2006; or (v) such other assets as the Central Government may specify in this behalf by notification.
Shahi & Co. — Our Understanding
This section is part of Chapter XII of the Income Tax Act, 2025, effective from 1 April 2026. It carries forward the corresponding provision from the Income Tax Act, 1961 with simplified language and restructured drafting.
Practical Note: For specific guidance on how this provision applies to your situation, consult a qualified Chartered Accountant. The Income Tax Act, 2025 retains the substance of the old law while making it more accessible.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 212 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to
egazette.gov.in or
incometaxindia.gov.in. This does not constitute legal or tax advice.