Answer

1. F

   Facts

   Residents can use any unused basic exemption against special rate capital gains like short-term gains on listed shares. Non-residents cannot, so the full gain is taxed at the special rate.

2. P

   Provisions and law

   • Sec 111A, Income-tax Act 1961 (now Sec 196, Income-tax Act 2025)Short-term gains on listed equity taxed at a special rate.
   • Sec 112A, Income-tax Act 1961 (now Sec 198, Income-tax Act 2025)Long-term gains on listed equity above ₹1,25,000 taxed at a special rate.
3. A

   Analysis

   Say an NRI has only ₹3,00,000 short-term gain on listed shares sold after 23 July 2024. It is taxed at 20%, so about ₹62,400 with cess, even though total income is low. A resident in the same case would adjust the exemption limit first. Plan sales accordingly.

4. C

   Conclusion

   1. 1Identify special rate gains.
   2. 2Do not reduce them by the exemption limit as an NRI.
   3. 3Compute tax at the special rates.
   4. 4Claim any TDS.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.