Section 218 — Tax on business income of Offshore Banking Units or International Financial Services Centre unit
Where the total income of an assessee includes income of the nature referred
to in section 147(3), the aggregate of income-tax payable by the assessee shall
be the aggregate of income-tax computed on the income specified in column B of the
36. Sections 217 and 218 substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to their
substitution, sections 217 and 218 read as under :
“217. Benefit under Chapter to be available in certain cases even after assessee becomes resi -
dent.—Where a non-resident Indian in any tax year,—
( a) becomes assessable as a resident in India in respect of total income in a subsequent
year; and
( b) furnishes a declaration in writing to the Assessing Officer along with his return of
income under section 263 for the tax year for which he is so assessable, to the effect
that provisions of sections 212 to 218 shall continue to apply to him in relation to
the investment income derived from any foreign exchange asset referred to in section
212(e) other than shares in an Indian company,
then the provisions of sections 212 to 218 shall continue to apply in relation to such income
for that tax year and every subsequent tax year until the transfer or conversion (otherwise
than by transfer) of such assets into money.
218. Chapter not to apply if the assessee so chooses.—A non-resident Indian may choose not
to be governed by the provisions of sections 212 to 217 for any tax year by declaring it in his
return of income under section 263 for such tax year, and if he does so,—
( a) the provisions of sections 212 to 217 shall not apply to him for that tax year, and
( b) his total income for that tax year shall be computed and charged to tax according
to the other provisions of this Act.”
Table below at the rate specified in the corresponding entry in column C of the said
Table:
TABLE
Sl. No. Income Rate of income-tax payable
A B C
1. Income referred to in section 147(3) 15%
2. Total income as reduced by income referred
to in Sl. No. (1)
Rates in force.]
Related sections
- Section 190 — Determination of tax where total income includes income on which no tax is payable
- Section 191 — Tax on accumulated balance of recognised provident fund
- Section 192 — Tax in case of block assessment of search cases
- Section 193 — Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer
- Section 194 — [Ss. 115B, 115BB, 115BBF, 115BBG, 115BBH and 115BBJ of the 1961 Act]
- Section 195 — Tax on income referred to in sections 102 to 106
- Section 196 — Tax on short-term capital gains in certain cases
- Section 197 — Tax on long-term capital gains
- Section 198 — Tax on long-term capital gains in certain cases
- Section 199 — Tax on income of certain manufacturing domestic companies
- Section 200 — Tax on income of certain domestic companies
- Section 201 — Tax on income of new manufacturing domestic companies
- Section 202 — New tax regime for individuals, Hindu undivided family and others
- Section 203 — Tax on income of certain resident co-operative societies
- Section 204 — Tax on income of certain new manufacturing co-operative societies
- Section 205 — Conditions for tax on income of certain companies and co-operative societies
- Section 206 — Special provision for minimum alternate tax and alternate minimum tax
- Section 207 — Tax on dividends, royalty and fees for technical service in case of foreign companies
- Section 208 — Tax on income from units purchased in foreign currency or capital gains arising from their transfer
- Section 209 — Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer
- Section 210 — Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer
- Section 211 — Tax on non-resident sportsmen or sports associations
- Section 212 — Interpretation
- Section 213 — Special provision for computation of total income of non-residents
- Section 214 — Tax on investment income and long-term capital gains
- Section 215 — Capital gains on transfer of foreign exchange assets not to be charged in certain cases
- Section 216 — Return of income not to be furnished in certain cases
- Section 217 — Application of benefits under sections 212 to 216
- Section 219 — Conversion of an Indian branch of foreign company into subsidiary Indian company
- Section 220 — Foreign company said to be resident in India
- Section 221 — Tax on income from securitisation trusts
- Section 222 — Tax on income in case of venture capital undertakings
- Section 223 — Tax on income of unit holder and business trust
- Section 224 — Tax on income of investment fund and its unit holders
- Section 225 — Income from business of operating qualifying ships
- Section 226 — Tonnage tax scheme
- Section 227 — Computation of tonnage income
- Section 228 — Relevant shipping income and exclusion from book profit
- Section 229 — Depreciation and gains relating to tonnage tax assets
- Section 230 — Exclusion of deduction, loss, set off, etc
- Section 231 — Method of opting of tonnage tax scheme and validity
- Section 232 — Certain conditions for applicability of tonnage tax scheme
- Section 233 — Amalgamation and demerger
- Section 234 — Avoidance of tax and exclusion from tonnage tax scheme
- Section 235 — Interpretation