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19. Tax paid by a Government or an Indian concern to a non resident (not being a company) or a foreign company on any income derived pursuant to an agreement entered into by the central government of a foreign state or an international organisation is also exempt from tax with effect from 1-04-88.
20. Interest received by a non resident Indian from such bonds as notified by the central Government or by any individual owning the bonds by virtue of being a nominee or survivor of such non resident Indian or by an individual to whom the bonds have been gifted by the non resident, will not be included in computing the total income of such individual. The bonds should have been purchased by a non resident Indian in foreign exchange and the interest & principle received in respect of such bonds whether on their maturity or otherwise is not allowable to be taken out of Indian. Even where the individual who is non resident Indian in the previous year in which the bonds are acquired, becomes a resident in India in any subsequent year, the interest received from such bonds will continue to be exempt in the subsequent years as well. In case of premature encashment of the bonds, the exemption shall stand withdrawn from the year of encashment.
21. Tax Free Bonds - Resurgent India Bonds: SBI offered these bonds to NRIs from August 5,1998 upto August 24,1998.The Bonds were issued to individual Non-resident Indians(NRIs), Overseas Corporate Bodies(OCBs) and Banks acting in a fiduciary capacity on behalf of NRIs and OCBs. The following bonds earlirer issued are also exempt from tax
(a) NRI Bonds (7 Years)were issued by State Bank of India.
(b) SBI had also issued India Development Bonds (5 years).
22. NRI's Exempted From One-By-Six Provisions - NRIs are now fully exempted from the provisions of the one-by-six income tax return filing scheme introduced in the last budget. Also, travel to neighbouring countries has been excluded from the criteria of foreign travel under the scheme, and senior citizens have been offered concessions under the scheme. NRI's are now exempted from having to file returns even if they maintain the assets mentioned in the scheme in India. Individuals aged 65 years and above, not engaged in any business or profession will not be required to file a return even if they meet the criteria on ownership of immovable property or subscription of a telephone. however, they will have to file a return under the scheme if they fulfil any of the other four criteria. Now travel to a foreign country for the purpose of the criteria under this scheme does not include travel to neighbouring countries: Bangladesh, Bhutan, Maldives, Nepal, Pakistan, and Sri Lanka. Also, travel to Saudi Arabia on Haj pilgrimage organised by Central Haj committee constituted under Haj committee Act,1959, and travel to China on pilgrimage to Kailash Mansarover organised by ministry of external affairs shall not be regarded as travel to any foreign country.
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