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Tax on non resident individual

Others 1102 views 5 replies

Mr. Shyam, a non-resident individual aged 85 years, has total income of Rs.7,50,000 for P.Y.
2018-19 which includes pension income from his employer as well as interest income.
Determine tax payable for A.Y. 2019-20.
(a) Rs.51,500
(b) Rs.52,000
(c) Rs.64,380
(d) Rs.65,000

Replies (5)
According to me answer is d)
thank you sir @ vishesh surana
but can you elaborate please because my notes shows option (D)
definition of senior citizen is that "a resident individual having the age of 60 years or more at any time during the previous year." Hence, since you are a non resident, u will not be covered under definition of senior citizen , hence , advantage of higher limit of income not chargeable to tax will not be available to you. Hence 750000 minus 500000 taxes at @ 20 percentage and 500000 minus 250000 taxed @ 5 percent and add 4 percent cess.
Dear Vishesh ji Cess is now 4 percent as per Finance Act 2018 and not 3 percentage
(d) Rs. 65000/-

Upto Rs. 250000 - Nil = Nil
Next 250000 - 5% = Rs. 12500
Next 250000 - 20% = Rs. 50000
Total = Rs. 62500
Add: Edu & Health Cess = Rs. 2500
@ 4% of Tax
Total Tax = Rs. 65000


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