- General Provisions
- Special Provisions
- Non Resident Indian (NRI)
- Special Business
- Relief for Double Taxtation
- Advance Rulings
- Exempted Income
- DTA Agreements
- Transfer Pricing
- Home
- Non Resident
- General Provisions
General Provisions
- General Provisions
- Special Provisions
- Non Resident Indian (NRI)
- Special Business
- Relief for Double Taxtation
- Advance Rulings
- Exempted Income
- DTA Agreements
- Transfer Pricing
.
- Meaning
- Tax-incidence on Non-resident
- Income deemed to be accrued in India
- Tax Rates (Individual)
- Tax Rates (Company)
Meaning
As per sec. 2( 30 ) of the Income-tax Act, 1956, non-resident means a person who is not a resident, and for the purposes of sections 92, 93 and 168, includes a person who is not ordinarily resident within the meaning of sec. 6(6)
To become a resident in India , following conditions are required to be satisfied:
Assessee | Condition to be a Resident | Condition to be an Ordinarily resident |
Individual | Assessee satisfies any one condition of sec. 6(1) i.e. a) He is in India in the previous year for a period of 182 days or more; or b) He is in India for a period of 60 days or more during the previous year and 365 days or more during 4 previous years immediately preceding the relevant previous year. Exceptions In the following cases, (b) is irrelevant:
| Assessee satisfies both the conditions of sec. 6(6) a) He has been resident in India in at least 2 out of 10 previous years immediately preceding the relevant previous year; and b) He has resided in India for a period of 730 days or more during 7 previous years immediately preceding the relevant previous year. |
HUF | Management is wholly or partly situated in India | Karta satisfies both the conditions of sec. 6(6) |
Company | ||
- Indian Co. | Always resident | Not applicable |
- Other Co. | Management is wholly situated in India | |
Firm | Management is wholly or partly situated in India | Not applicable |
AOP | ||
BOI | ||
Other person |
Following income of a non-resident is taxable in India :
- Income received in India
- Income earned or accrued in India
- Income deemed to accrue or arise in India u/s 9.
Income deemed to be accrued in India [Sec. 9]
Following incomes are deemed to accrue or arise in India :
- Income from business arising through business connection in India
- Income from any property/asset if such property/asset is located in India
- Income on transfer of a capital asset situated in India
- Income from salaries (including salary for rest period or leave period), if service is rendered in India
- Income from salaries received from the Government by an Indian citizen for services rendered outside India
- Income from dividend paid by an Indian company even though such dividend is received outside India
- Income from interest payable by the Government or by any other person in certain circumstances
- Income by way of royalty payable by the Government or by any other person in certain circumstances
- Income by way of fees for technical services payable by the Government or by any other person in certain circumstances
However, following income shall not be considered as income accrued in India :
- Business activity confined to purchase of goods: In the case of a non-resident, no income shall be deemed to accrue or arise in India to him from operations, which are confined to the purchase of goods in India for the purpose of export.
- Business activity of a news agency confined to collection of news, etc .: In the case of a non-resident, being a person engaged in the business of running a news agency or of publishing newspaper, magazines or journals, no income shall be deemed to accrue or arise in India to him through or from activities, which are confined to the collection of news and views in India for transmission out of India.
- Business activity confined to shooting: In the case of a non-resident, being -
- An individual who is not a citizen of India ; or
- A firm which does not have any partner, who is a citizen of India or who is resident in India ; or
- A company, which does not have any shareholder who is a citizen of or resident in India ;
no income shall be deemed to accrue or arise in India through or from operations, which are confined to the shooting of any cinematography film in India .
Tax Rates (General) for A.Y. 2010-11 (i.e. applicable for income earned or received during the F.Y. 2009-10)
For IndividualTotal Income Range | Rates of Income Tax |
Up to Rs.160000 | Nil |
Rs.160001 to Rs.300000 | 10% of the amount by which the total income exceeds Rs.160000 |
Rs.300001 to Rs.500000 | Rs.14000 + 20% of the amount by which the total income exceeds Rs.300000 |
Rs.500001 and above | Rs.54000 + 30% of the amount by which total income exceeds Rs.500000 |
The tax as computed above is further increased by education cess and Secondary and Higher Education Cess (SHEC) @ 3% of computed tax.
Tax Rates (General) for A.Y. 2011-12 (i.e. applicable for income earned or received during the F.Y. 2010-11)
Total Income Range | Rates of Income Tax |
Up to Rs.160000 | Nil |
Rs.160001 to Rs.500000 | 10% of the amount by which the total income exceeds Rs.160000 |
Rs.500001 to Rs.800000 | Rs.34000 + 20% of the amount by which the total income exceeds Rs.500000 |
Rs.800001 and above | Rs.94000 + 30% of the amount by which total income exceeds Rs.800000 |
The tax as computed above is further increased by education cess and Secondary and Higher Education Cess (SHEC) @ 3% of computed tax.
Company | Rate |
In the case of a domestic company | 30% |
In the case of a foreign company | 40% |
Surcharge for A.Y.2010-11: 10% (2.5% in case of foreign company) of income-tax (if total income exceeds Rs.1 crore otherwise Nil)
Surcharge for A.Y.2011-12: 7.5% (2.5% in case of foreign company) of income-tax (if total income exceeds Rs.1 crore otherwise Nil)
The tax and surcharge (if any) as computed above is further increased by education cess and Secondary and Higher Education Cess (SHEC) @ 3% of computed tax and surcharge.
