(1) No deduction in respect of any expenditure or allowance shall be allowed under any provision of this Act in computing the investment income of a 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 income by way of long-term capital gains or both then no deduction shall be allowed under Chapter VIII;
(b) the gross total income includes any income referred to in clause (a),––
(i) the gross total income shall be reduced by such income; and
(ii) the deductions under Chapter VIII shall be allowed as if the gross total income as so reduced was the gross total income of the assessee
