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TAX CALCULATION

CMA RAVI GUPTA (MT in VPL) (493 Points)

10 November 2009

Q1 . 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?

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17 Replies

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%

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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.

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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.

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 not allow in U/s 80C

Total Income u/s 288A 214000

Tax on LTCG Rs. 79000 @ 20% 15800

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.

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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.

Q1 . 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?

Assuming the assesee is not Person of Indian Origin, the Calculation shall be as under;

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