Income Tax Act 2025: Section 216 for Tax Year 2026-27

Return of income not to be furnished in certain cases

[Section-216 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

It shall not be necessary for a non-resident Indian to furnish a return of his income under section 263(1), if—

• (a)his total income during the tax year consisted only of investment income or income by way of long-term capital gains or both; and
• (b)the tax deductible at source under the provisions of Chapter XIX-B has been deducted from such income.

FAQs on Section 216 of Income Tax Act 2025

Who is eligible for exemption from filing a return under Section 216?
A non-resident Indian is eligible if their total income during the tax year consists only of investment income, long-term capital gains, or both, and tax has been deducted at source on such income.

What types of income qualify for the exemption in Section 216?
Only investment income, long-term capital gains, or both qualify for the exemption.

Is the exemption under Section 216 available to resident Indians?
No, the exemption applies only to non-resident Indians.

Does the exemption apply if tax has not been deducted at source?
No, tax must be deducted at source under Chapter XIX-B for the exemption to apply.

Can a non-resident Indian voluntarily file a return even if exempt under Section 216?
Yes, a non-resident Indian can still choose to file a return voluntarily.

What if a non-resident Indian has other income apart from investment income or long-term capital gains?
In that case, the exemption under Section 216 will not apply, and a return must be filed.

Is short-term capital gain income covered under Section 216?
No, only long-term capital gains are covered. Short-term capital gains would require return filing.

What does “investment income” refer to in this context?
It generally includes income from investments such as interest, dividends, etc., that are specified under the Act for non-resident Indians.

Does the exemption under Section 216 require any declaration or application to the tax authorities?
No declaration or application is required if the conditions are met; the exemption is automatic.

Will a non-resident Indian get a refund if tax deducted exceeds actual liability without filing a return?
No, to claim a refund, filing a return is necessary.