Basic exemption whether applicable to non residents

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Query 

Whether the basic exemption limit ( Rs.180000/-) is applicable to Non residents assessee's having only investment income  & long term capital gains income as mentioned u/s 115 D (2) (a)

PART I --- Paragraph A --- Part I of the First Schedule of the Income Tax Act states 

         In the case of every individual other than the individual referrred to in item ( II ) ( III ) and (IV) of this paragraph or Hindu undivided family or association or body of individuals , whether incorporated or not , or every artificial judicial person referred to in sub- clause ( vii) of clause (31) of section 2 of the Income tax Act , not being a case to which any other Paragraphof this Part applies states that the basic exemption limit upto Rs.180000/- 

        The item ( II ) , ( III ) & ( IV ) refer to individual who are resident in India ( it is expressly provided ) . The mention of non - resident is no where mentioned . So does the basic exemption apply to non resident Assessees

 

Replies (6)

As per my knowledge the basic exemption limit (1,80,000) also covers non resident as it is not mentioned resident individual.

yes basic exemption limt of Rs 180000 is applicable to non resident .

Agree with parihar.

It is residue limit so it covers non resident also....But take into consideration following points for NON RESIDENT :-

1. The basic exemption limit in case of non resident will be available for only normal rate of income i.e. non resident does not enjoy shifting benefit unlike resident individuals............

2. Incomes taxable at special rate will be straight forward taxable.

Example :- Suppose Mr. x, non resident has following incomes :-

1. Income from Business & Profession  -  150000

2. Long term capital Gain on sale of Land - 50000

Ans :- Taxable income would be here 50000 ltcg because b&p income wiil be covered under basic exemption limit still Mr.x have balance limit available 30000 but he can not use it against Ltcg on Land

Tax = 20% * 50000

If mr x is resident then taxable income will be only 20000 and tax = 20% * 20000 because Mr. x here enjoys shifting benefit of 30000.

 

i am currently working in signapore under work permit. i went there on 05/10/2011. whether i will have to pay tax in india or singapore. i am earning 8000 singapore dollars. reply it urgent

 

yes the slab rates also applicable to NRIs

 

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