{
  "id": 14931861,
  "title": "Can NRIs use basic exemption limit to reduce tax?",
  "url": "https://urgent.news/2026/10/16/can-nris-use-basic-exemption-limit-to-reduce-tax",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-16T09:28:35.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/wealth/tax/nri-capital-gains-tax-when-can-you-use-the-basic-exemption-limit-to-lower-your-income-tax-bill/articleshow/134989302.cms"
  },
  "original_language": "en",
  "account": "Non-resident Indians (NRIs) can indeed use their basic exemption limit to lower their tax burden on certain capital gains that are taxed at a standard rate. However, they cannot apply this limit to capital gains that are taxed at a special rate. Special rate capital gains include short-term capital gains from specific listed securities, long-term capital gains under certain provisions, and interest income on specific bonds. For instance, if an NRI earns short-term capital gains from listed bonds or listed equity shares under Section 111A, they can use the Rs 4 lakh basic exemption limit to reduce their tax liability. This means that if their total income from these sources is within the Rs 4 lakh exemption limit, they may not owe any tax on that income. However, if an NRI earns capital gains that are taxed at a special rate and they also earn ordinary income that is subject to the standard tax slabs, they cannot use the basic exemption limit to offset the special rate capital gains. This means that the entire special rate capital gain will be taxed at the applicable special rate, which could result in a higher overall tax liability.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}