CS Executive · Tax Laws and Practice · Basic Concept of Income Tax
Under section 211 of the Income-tax Act, 2025, a non-resident sportsman who is not an Indian citizen has total income of Rs 15,00,000, of which Rs 5,00,000 is from participation in a sport in India. What is the rate on the Rs 5,00,000 and the treatment of the remaining income?
The sport income of Rs 5,00,000 is taxed at 20%, and the remaining Rs 10,00,000 is taxed at the rates in force. Section 211 of the Income-tax Act, 2025 separates the specified income of the non-resident sportsman from the rest of total income.
- A20% on Rs 5,00,000; remaining Rs 10,00,000 at rates in forceCorrect
- B20% on the full Rs 15,00,000
- CRates in force on Rs 5,00,000; 20% on Rs 10,00,000
- D30% on Rs 5,00,000; remaining Rs 10,00,000 at rates in force
Explanation
Section 211 taxes the specified income (participation in sport in India, advertisement, articles) at 20%. Total income as reduced by that income is taxed at rates in force. Applying 20% to everything misreads the table.
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