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Income tax slab applicable to non-residents (NRI) for AY 2021-22

Non-resident individuals, HUF, AOP, BOI, and co-operative society can opt for the existing tax regime or the new tax regime with a lower rate of taxation (u/s 115BAC of the Income Tax Act). The taxpayer opting for concessional rates in the new tax regime will not be allowed certain exemptions and deductions (like 80C, 80D, 80TTB, HRA) available in the existing tax regime.

Existing and new income tax rates for non-resident individuals for AY 2021-22

Existing Tax Regime

New Tax Regime u/s 115BAC

Income Tax Slab

Income Tax Rate

Income Tax Slab

Income Tax Rate

Up to Rs 2,50,000

Nil

Up to Rs 2,50,000

Nil

Rs 2,50,001 – Rs 5,00,000

5% above Rs 2,50,000

Rs 2,50,001 – Rs 5,00,000

5% above Rs 2,50,000

Rs 5,00,001 – Rs 10,00,000

Rs 12,500 + 20% above Rs 5,00,000

Rs 5,00,001 – Rs 7,50,000

Rs 12,500 + 10% above Rs 5,00,000

Above Rs 10,00,000

Rs 1,12,500 + 30% above Rs 10,00,000

Rs 7,50,001 – Rs 10,00,000

Rs 62,500 + 15% above Rs 7,50,000

 

 

Rs 10,00,001 – Rs 12,50,000

Rs 1,00,000 + 20% above Rs 10,00,000

 

 

Rs 12,50,001 – Rs 15,00,000

Rs 1,50,000 + 25% above Rs 12,50,000

 

 

Above Rs 15,00,000

Rs 2,12,500 + 30% above Rs 15,00,000


Note: The rates of surcharge and Health & Education cess are the same under both the tax regimes.

Surcharge

Surcharge is an additional charge levied for persons earning income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates.

10% of income tax - if taxable income above Rs 50 lakh – Up to Rs 1 crore

15% of income tax - if taxable income above Rs 1 crore - Up to Rs 2 crores

25% of income tax - if taxable income above Rs 2 crores - Up to Rs 5 crores

37% of income tax - if taxable income above Rs 5 crores The maximum surcharge on income by way of dividend or income under the sections 111A, 112A, and 115AD is 15%.

Marginal Relief

Marginal relief is a relief from the surcharge, provided in cases where the surcharge payable exceeds the additional income that makes the person liable for the surcharge. The amount payable as surcharge shall not exceed the amount of income earned exceeding ₹ 50 lakh, 1 crore, 2 crores, or 5 crores respectively.

Health and Education cess

Health and Education cess @ 4% shall also be paid on the amount of income tax plus surcharge (if any).

Non-resident co-operative society

Existing Tax Regime

New Tax Regime u/s 115BAD

Income Tax Slab

Income Tax Rate

Particulars

Income Tax Rate

Upto Rs 10,000

10% of the income

Income tax rate

22% of total income

Rs 10,000 to Rs 20,000/-.

Rs 1,000 plus 20% of (taxable income – 10,000)

Surcharge

10% of Income Tax

Above Rs 20,000/-

Rs 3,000 plus 30% of (taxable income – 20,000)

Health & Education Cess

4% of (Income Tax plus Surcharge).

Surcharge

12% of the Income Tax, if taxable income is above Rs 1 crore

 

 

Health & Education Cess

4% of (Income Tax plus Surcharge)

 

 

 

Non-resident firm

Income Tax rate

30% of taxable income.

Surcharge

12% of the Income Tax, if taxable income is above ₹ 1 crore

Health & Education Cess

4% of (Income Tax plus Surcharge).

 

Non-resident foreign company

Condition

Income Tax Rate

Royalty from Government or an Indian concern in pursuance of an agreement made with the Indian concern after 31st March 1961, but before 1st April 1976, or fees for rendering technical services in pursuance of an agreement made after 29th February 1964 but before 1st April 1976 and where such agreement has, in either case, been approved by the Central Government

50%

Any other income

40%

Surcharge

2% of income tax – if taxable income is above ₹ 1 crore.

5% of income tax – if taxable income is above ₹ 10 crores.

Health & Education Cess

4% of (Income Tax plus Surcharge).

Marginal Relief – The amount payable as surcharge shall not exceed the amount of income earned exceeding ₹ 1 crore and ₹ 10 crores respectively.

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TaxGyata Team

TaxGyata Team