Is there a difference in Tax Slabs & Rates for Residents and Non-Residents?

Normal tax rates are applicable to resident/non-resident Hindu Undivided Family (HUF). However, in case of a non-resident individual the tax rates will be same irrespective of his age. For the purpose of ascertainment of the applicable tax slab, an individual can be classified as follows:

  • Resident individual below the age of 60 years.
  • Resident individual of the age of 60 years or above at any time during the year but below the age of 80 years.
  • Resident individual of the age of 80 years or above at any time during the year.
  • Non-resident individual irrespective of the age.
Income Tax Slabs & Rates for Non-resident: AY 2019-20

Non-resident Tax Slabs: Individual / HUF / AOP / BOI

Standard Deduction of 40,000/- available under Section 16(ia) with effect from1st April 2018 in lieu of Transport Allowance and Reimbursement of Miscellaneous Medical Expenditure to Salaried Tax Payers.

Taxable Income Slab Income Tax
Upto 2,50,000/-. NIL
2,50,000/- to 5,00,000/-. 5% of (taxable income - 2,50,000).
5,00,000/- to 10,00,000/-. 12,500/- + 20% of (taxable income - 5,00,000).
Above 10,00,000/-. 112,500/- + 30% (taxable income - 10,00,000)
Surcharge ( subject to Marginal Relief ) 10% of the Income Tax, in case taxable income is above 50 lacs. 15% of the Income Tax, where taxable income is more than 1 crore.
Health & Education Cess 4% of (Income Tax + Surcharge).

Non-resident Tax Slabs: Co-operative Society

Taxable Income Slab Income Tax
Upto 10,000/-. 10% of the income
10,000/- to 20,000 1,000/- + 20% of (taxable income - 10,000)
Above 20,000/- 3,000/- + 30% of (taxable income - 20,000)
Surcharge ( subject to Marginal Relief ) 12% of the Income Tax, in case taxable income is above 1 crore.
Health & Education Cess 4% of (Income Tax + Surcharge).

Non-resident: Firm

Income Tax 30% of taxable income.
Surcharge ( subject to Marginal Relief ) 12% of the Income Tax, in case taxable income is above 1 crore
Health & Education Cess 4% of (Income Tax + Surcharge).

Non-resident: Corporate (Foreign Company)

Nature of Income Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government Any other income 50% 40%
Surcharge ( subject to Marginal Relief ) 2% of income tax, in case taxable income is above 1 crore. 5% of income tax, in case taxable income is above 10 crores.
Health & Education Cess 4% of (Income Tax + Surcharge).
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