The Statutory Brief

IT Act 1961 → 2025 / Section 115AD

Non-residents & DTAA

Section 115AD → Section 210

Tax rates for Foreign Institutional Investors (FPIs) on securities income and capital gains

Section 115AD of the old Income-tax Act, 1961 · new section 210 under the Income-tax Act, 2025

New reference Section 210

Income-tax Act, 1961Section 115AD

  • Income from securities 20% (specified funds 10%)
  • STCG under 111A 20%; other STCG 30%
  • LTCG 12.5%

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 210

  • Same rate table, section 210
  • Securities income: 20% (FII), 10% (specified fund)
  • STCG: 20% (STT-paid equity) / 30% (others); LTCG: 12.5%

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered and tabulated; rates unchanged.

Practice notes

  • Treaty rates may apply under section 159.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is the tax rate for FPIs under the new Income Tax Act 2025?

Section 210: 20% on securities income, 20%/30% on STCG and 12.5% on LTCG.

What is section 115AD called in the new Income-tax Act, 2025?

Section 115AD of the Income-tax Act, 1961 corresponds to Section 210 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 115AD under the new Income Tax Act?

Renumbered and tabulated; rates unchanged.

Is section 115AD still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 115AD of the 1961 Act. Section 210 of the 2025 Act applies from tax year 2026-27.

Related sections

115A→207Tax on dividends, interest, royalty and FTS of non-residents and foreign companies112A→198Tax on long-term capital gains from listed equity shares, equity mutual funds and business trust units (STT paid)111A→196Tax on short-term capital gains from listed equity shares, equity mutual funds and business trust units (STT paid)