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Non-Resident

sandesh (Accountant) (55 Points)

23 March 2010

Hi Freinds,

I want to konw that benefit of basic exemption limit to a Non-resident in case of long term capital gain

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5 Replies

Amir (Learner) (4016 Points)
Replied 23 March 2010

Dear Sandesh,

Unexhausted Exemption Limit cannot be utilized against Long Term Capita Gains in case of Non Resident Individuals/HUF............

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sandesh (Accountant) (55 Points)
Replied 23 March 2010

Thanks Amir sir

one more question sir

In case if he lets out the Property : - What will be tax rate on the Rent Income

In case of Long Term Capital Gain : - What will be tax rate on this

Whether the benefit of DTA agreement is applicable to the above income.

What Type of Return is required to be furnished?

vivek singhal (Chartered accountant) (79 Points)
Replied 23 March 2010

dear sandesh,

in case of rental income, tds shall be deducted @ 10% by tenant. LTCG shall be taxable at the rate mention in section 115A and he shall be required to file ITR 2 and benefit of DTAA shall be available to him

nilesh dube (Service ) (74 Points)
Replied 23 March 2010

Tax treatment in your case will be as follows.

1. Rental Income : At the time of Making payment of the Rent ,the tenant will deduct the TDS @ 30% U/s 195 of Income Tax Act.

the tax rate applicable on the rental income will be same as applicable to individual assessee .which is as follows

up to 1,60,000 NIL

1,60,001 to 3,00,000 10%

3,00,001 to 5,00,000 20%

Above 500000 30%

Non resident is required to file ITR 2 in the same way as the individual assesse is required under the Income tax act 1961.

Long Term Capital gain : Taxable @ 20% as provided u/s 115E (For NRI) & u/s 112 for all assessee.

Benefit of indexation not available to non resident.

Benefit of Chap VI not available.

Benefit of unexhaused basic exemption limit not available.

Benefit of DTA agreement :

Benefit of DTAA is not available for rental income & LTCG arising from sale of capital Assets, as most of the DTAA contains the provision that such income is taxable in the country in which the property is situated.