TAX CALCULATION

 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%

 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)

vipin thanxx for reply but your answer is wrong .

 Ok ravi ... 

so what will be right answer ? Plz told me also

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.

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?

 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 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

 sorry yar but its true that non resident can't claim deduction u/s 80c and exmption limit also.

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.

i agreed with you but he can't take exmption limit.

n but a non resident is entitled to get the benefit slab rate. You should consult you teacher for your doubts

Dear Ravi,

Further to your query vide PM date 13th Nov 09, please find below my response.

Regards

Juzer