CMA RAVI GUPTA (MT in VPL) (493 Points)
10 November 2009Q1 . WHAT IS THE TAX RATES FOR NON RESIDENT
FOREIGN CITIGEN FOR THE A.Y. YEAR 2009-10?
Q2. SALARY= 97000
BUSINESS INCOME= (-)54000
STCG(NOT RELATES TO U/S 111A)= 92000
LTCG ON SALE OF NON LISTED DEBENTURES=
79000
HE CONTRIBUTES TO PPF 55000.CALCULATE THE
AMOUNT OF TAX FOR NON RESIDENCE?
VIPIN KUMAR
(Practicing)
(309 Points)
Replied 10 November 2009
Ans 1. Tax rate of non resident for the A.Y. 2009-10 is
Up to 150000 Exempt
150000 - 300000 10%
300000 - 500000 20%
above 500000 30%
VIPIN KUMAR
(Practicing)
(309 Points)
Replied 10 November 2009
Ans 2.
Income under the head salary 97000
Income under the head capital gain 117000
STCG 92000
(-) Business Loss 54000
38000
LTCG 79000
Gross Total Income 214000
Less : Dedn allow in U/s 80C 55000
Total Income u/s 288A 159000
Tax on total income is Rs. 930 (u/s 288B)
CMA RAVI GUPTA
(MT in VPL)
(493 Points)
Replied 12 November 2009
vipin thanxx for reply but your answer is wrong .
VIPIN KUMAR
(Practicing)
(309 Points)
Replied 12 November 2009
Ok ravi ...
so what will be right answer ? Plz told me also
Sunil
(Trader)
(2611 Points)
Replied 12 November 2009
No deduction u/s 80C for Non Residents. If business income isdeemed to accrue in India, Royalties and Technical fees are taxed on the gross amount and reduced from the rest of the income on which income will be taxed based on attribution to PE by principles of attraction. If there is no PE only the state where he is resident has the right to tax business income. If Business income includes royalties and technical fees, they will be taxed at 10% of gross amount or as per DTAA. After reducing the royalty and TF tax willbe done on remainder of business income only if there is a BOPE or DAPE.
Yeshwanth
(Chartered Accountant)
(145 Points)
Replied 12 November 2009
Income from Salary = 97000
- Business Loss = (54000)
Net Income = 43000
Since the net income is 43k deductions under chap VI A Cannot exceed the net income
Hence rs 43000 from ppf is considered
Now net income will be 0
LT Capital Gains will be taxed @ 20% ie 15800
ST Capital Gains will be taxed @ 15% since not covered u/s 111A ie 13800
SO he has to pay capital gains tax of Rs. 29600
Am i right?
VIPIN KUMAR
(Practicing)
(309 Points)
Replied 12 November 2009
Loss under the head business / prof. can not be set off from under the head salary & also as per sec 58(4) it can not be set off from casual income.
VIPIN KUMAR
(Practicing)
(309 Points)
Replied 13 November 2009
| Originally posted by :vipin Kumar | ||
| " |
Ans 2. tax on normal income Rs. 135000 at slab rate NIL total tax liab. u/s 288B 16270
Am i right now ? |
" |
CMA RAVI GUPTA
(MT in VPL)
(493 Points)
Replied 13 November 2009
vipin thanxxxx 4 reply.but you r again wrong .I want to ask a question where did you read that a non resident can't claim deduction u/s 80c .every individual is eligible to claim deduction u/s 80c whether resident or not.so again your answer is wrong
VIPIN KUMAR
(Practicing)
(309 Points)
Replied 13 November 2009
sorry yar but its true that non resident can't claim deduction u/s 80c and exmption limit also.
CMA RAVI GUPTA
(MT in VPL)
(493 Points)
Replied 14 November 2009
no vipin u r wrong. You should read the book again. you r getting confusion.every individual and huf can (whether resident or non-resident) claim deduction u/s 80c.
VIPIN KUMAR
(Practicing)
(309 Points)
Replied 14 November 2009
i agreed with you but he can't take exmption limit.
CMA RAVI GUPTA
(MT in VPL)
(493 Points)
Replied 16 November 2009
n but a non resident is entitled to get the benefit slab rate. You should consult you teacher for your doubts
Juzer Sadikot
(CA - innovative solutions for Imports and Exports)
(1309 Points)
Replied 16 November 2009
Dear Ravi,
Further to your query vide PM date 13th Nov 09, please find below my response.
|
Particulars
|
Rs.
|
Case I
|
Case II
|
|
|
I. Salary
|
|
97000
|
97000
|
|
|
II. Profit and gains from Business and profession (other than Speculative Business)
Adjusted against (STCG)/(LTCG)
Carry forwarded
|
-54000
54000
Nil
|
0
|
0
|
|
|
III. STCG (otherwise than u/s. 111A)
Set-off loss from “II” (only in case I)
|
92000
(54000)
|
38000
|
92000
|
|
|
IV. LTCG on Sale of unlisted Debentures
Set-off loss from “II” (only in case II)
|
79000
(54000)
|
79000
|
25000
|
|
|
|
||||
|
Gross total Income
|
|
214000
|
214000
|
|
|
Deduction under Chapter VI-A (Section 80C)
|
|
55000
|
55000
|
|
|
Total Income
Taxable at Special rate (LTCG)
Taxable at Normal rate (Salary + STCG)
|
|
159000
79000
80000
|
159000
25000
134000
|
|
|
Tax on Total Income
Case I
Tax at Special rate (LTCG) = Rs. 79000x20% (Section 112(1)(c))
Tax at Normal slab rate (Salary + STCG) = Rs. 80000 (under basic exemption limit and hence no tax)
Case II
Tax at Special rate (LTCG) = Rs. 25000x20% (Section 112(1)(c))
Tax at Normal slab rate (Salary + STCG) = Rs. 134000 (under basic exemption limit and hence no tax)
|
|
15800
15800
Nil
|
5000
5000
Nil
|
|
Regards
Juzer
CAclubindia
