Non Resident Taxation on LTCG

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Anushree (Querist)
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29 October 2009 A Senior Citizen Non-Resident Assessee earned Long Term Capital Gain income in India & has no other income hence how he will be taxed for the F. Y. 2008-09?? Does he eligible to get benefit of Unabosorbed Limit? Please explain with an Example.

Sir, as the assessee is having no other income the basic limit of Rs. 2,25,000/- is unabsorbed. So Can this limit be taken for taxing the assessee?

CA Balram Sharma

CA Balram Sharma (Expert)
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29 October 2009 please clarify what do u mean by unabsorbed limit?

CA A RAMVEL

CA A RAMVEL (Expert)
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29 October 2009 Hi Anushree,

As per the provisions of section 112(1)(c), a non resident having long term capital gain has to pay tax at 20% without considering basic exemption limit available for an individual.

For example: if Mr.X, a non resident has other income of Rs.150000 and LTCG of Rs 100000/-. As per the above section he need not pay tax on 150000 because it will be under basic exemption limit. However he has to pay 20% + applicable surcharge and cess on the capital gain of Rs.100000/-

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