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The
following are the direct tax rates which affect the NRIs.
INCOME
TAX
The
basic limit and the income tax rates for assessment year 2000-2001 relevant
to Financial Year 1999-2000 are as under :-
|
Status
|
Income
(Rs.)
|
Tax
Rate %
|
|
For Individuals, HUFS, Trusts,
AOPs.
etc
|
50,000/-
|
NIL
|
|
50,000/-
- 60,000/-
|
10
|
|
60,000/-
- 150,000/-
|
20
|
|
Above
150,000/-
|
30
|
2. Partnership
firms and domestic
companies Re. 1 onwards, 35%
3. Other
than domestic company
Re. 1 onwards, 48% (Foreign
Companies)
4. Royalty
and technical fees are liable at a concessional rate of 30% and 20% respectively.
WEALTH
TAX
Under the
Wealth Tax Act, 1957, Individuals, HUFs and Companies pay wealth tax.
Individuals will include residents as well as non-residents. In the case
of individuals, HUFs and certain companies, Wealth Tax is payable at 1
% on the net wealth exceeding Rs. 1.5 Million as on valuation date which
is the last date of the previous year i.e. 31st March. Net
wealth is arrived at after various deductions, exemption and liabilities
as on the valuation date.
GIFT TAX
Under the
Gift Tax Act, 1958, gift tax was payable by the donor upto 30th
September, 1998. The Gift Tax Act has been repealed with effect from 1st
October, 1998 and therefore the Gift Tax is not chargeable for the gifts
made on or after 1st October, 1998.
The gift
can therefore be freely given by NRIs to residents, but they must be genuine
and by an NRI who has capacity to give such gifts.
ESTATE
DUTY
Estate duty
was payable on the estate of a persons who have died on or before 15th
March, 1985. The Estate Duty Act has been repealed and therefore there
is no estate duty from the said date.
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