r2i forum

I am a non-resident and live in the US. I had requested my father to file the income-tax return for income received in India. The total income for assessment year (AY) 2008-09 is . 107,000 and is below the basic exemption limit. But the I-T department has asked me to pay tax as it says the basic exemption for NRIs is . 100,000 and not . 145,000. Kindly clarify.

PM KANDASAMY


The basic exemption applicable to NRIs (irrespective of gender and age) for AY09 was . 110,000. The higher amount of basic exemption was available only to resident females (. 145,000) and to resident senior citizens (. 195,000). Since your income was less than . 110,000, the tax liability is nil. However, if your income for the year comprised any short-term capital gains taxable under Section 111A or long-term capital gains, then tax on such gains would be payable at the applicable rates even if the total taxable income for the year was less than . 110,000.


VAIBHAV SANKLA
Executive Director Adroit

thanks to Economic Times