Special provision for computation of total income of non-residents
(1)
No deduction in respect of any expenditure or allowance shall allowed under any provision of this Act in computing the investment income non-resident Indian.
(2)
In the case of an assessee, being a non-resident Indian, where–– (a) the gross total income consists only of investment income or by way of long-term capital gains or both then no deduction shall be under Chapter VIII;
(b)
the gross total income includes any income referred to in clause (i) the gross total income shall be reduced by such income; and (ii) the deductions under Chapter VIII shall be allowed as if gross total income as so reduced was the gross total income of assessee.