Tax payable on long term capital gain for NRI

Hi , by virtue of the proviso to section 112 of income tax act ,1961  , only resident individual and huf is allowed to claim the benefit of slab rate i.e maximum amount not chargeable to tax in case of long term capital gain . You must not be having any other income and only and only  income is long term capital gain so when you are providing with the residential status of resident it is adjusting with Rs 180000 while straightaway 20% tax will be levied without adjustment for limit . 

Agree with Shashank.....

Shashank has correctly pointed that as per proviso to sec. 112(1)(a) the benifit of basic exemption limit is only available to resident individuals & HUF and this was brought in Income Tax Act by an amendment by Finance Act,1994.

Anuj

+91-9810106211

femaquery @ gmail.com

yes as per sec 112 of income tax act, only resident and huf are allowed to deduct from LTCG,STCG111A if the normal income is less than exemption limit but for NR there is no such provision

therefore your tax liability is 20%of  LTCG +3%

Thank you all for the valid input.

Isn't for the NRI, section 115E is applicable over section 112 under which NRI has to pay 10% long term capital gain tax?

https://law.incometaxindia.gov.in/DIT/intnrcount.aspx

https://law.incometaxindia.gov.in/DIT/File_opener.aspx?fn=https://law.incometaxindia.gov.in/Directtaxlaws/act2005/section115e.htm

Tax on investment income and long-term capital gains.

115E. Where the total income of an assessee, being a non-resident Indian, includes—

          (a)  any income from investment or income from long-term capital gains of an asset other than a specified asset;

          (b)  income by way of long-term capital gains,

the tax payable by him shall be the aggregate of—

           (i)  the amount of income-tax calculated on the income in respect of investment income referred to in clause (a), if any, included in the total income, at the rate of twenty per cent;

          (ii)  the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income, at the rate of ten per cent; and

         (iii)  the amount of income-tax with which he would have been chargeable had his total income been reduced by the amount of income referred to in clauses (a) and (b).]