Do you want to claim the benefit u/s 115H (Applicable in case of Resident) in ITR 2026-27

The phrase “Do you want to claim the benefit u/s 115H” is a standard question found in Indian Income Tax Return (ITR) forms. It specifically applies to Non-Resident Indians (NRIs) who have recently returned to India and become residents.

Section 115H of the Income Tax Act allows a returning NRI to maintain their special tax benefits on foreign exchange assets even after their status changes to a resident.

• Tax Rate: It locks in a concessional investment tax rate of 10% on specified assets.
• Duration: The benefit continues until the assets are transferred or converted into money.
• Eligible Assets: It applies to foreign currency earnings invested in shares of Indian companies, debentures, deposits with public companies, and Central Government securities.

• Select “YES” if: You are a newly returned resident Indian who previously earned foreign exchange assets as an NRI, and you want to keep paying the lower tax rate on that investment income.
• Select “NO” if: You have never been an NRI, or you are a returning NRI but do not hold any eligible foreign exchange assets.

If you select Yes, you must submit a formal declaration to the Assessing Officer. This declaration must be filed along with your return of income under Section 139(1) for that assessment year.