What is section 115 of income tax?

If you're seeing "115" somewhere while filing your return, I'd check whether the reference actually says 115A, 115AB, 115AC, 115AD, 115BAC, etc.

Those are different provisions with different purposes.

For example, Section 115BAC is associated with the new tax regime for individuals and certain other taxpayers, whereas Section 115A deals with specified income of non-residents.

So the number after 115 is extremely important. I'd avoid relying on the term "Section 115" alone when deciding how income should be reported.

I had the same confusion when filing my ITR as an NRI. Someone told me "Section 115 applies to NRIs," but that's too broad a statement.

There are multiple provisions under the 115 series. For example, Section 115A can cover certain income of non-residents, while Section 115AD deals with specified income of certain foreign institutional investors/foreign portfolio investors.

So I wouldn't assume that every NRI has to use Section 115 or that all investment income is automatically taxed under it.

The exact subsection mentioned in your tax statement or ITR utility is important.

The confusing part is that Section 115 isn't really one standalone tax rule that applies to everyone. There are many sections beginning with 115, and each deals with a particular type of income or taxpayer.

For example, Section 115A is relevant to certain income earned by non-residents, including specified dividends, interest and other income. Other provisions in the 115 series deal with different situations.

I initially made the mistake of searching for "Section 115 tax rate" without looking at the subsection. That wasn't very helpful because the applicable provision depends on what type of income you're talking about.

For an NRI, I'd first identify the income—interest, dividend, capital gains, etc.—and then determine which specific section applies.