Report No. 12
124. Tax in the case of non-resident.-
Where a person is a non-resident and is not a company, the tax payable by him or on his behalf on his total income shall be an amount equal to-
(a) the income-tax which would be payable on his total income at the maximum rate, plus;
(b) either the super-tax which would be payable on his total income at the rate of nineteen per cent. or the super-tax which would be payable on his total in come if it were the total income of a resident, whichever is greater.
[Section 17(1), main para.]
(2) Any non-resident, other than a company, may on or before the 30th day of June of the assessment year in which he first becomes assessable, by notice in writing to the Income-tax Officer declare (such declaration being final and being applicable to all assessments thereafter) that the tax payable by him or on his behalf on his total income shall be (determined with reference to his total world income, and thereupon notwithstanding the provisions of sub-section (1) such tax shall be determined in accordance with sub-section (3).
[Section 17(1), 1st proviso, latter part.]
(3) Where under the provisions of sub-section (2) or under any similar provision of the Indian Income-tax Act, 1922 (11 of 1922), any non-resident has exercised his option to be taxed with reference to his total world income, the tax payable by him or on his behalf on his total income shall be an amount bearing to the total amount of tax which would have been payable on his total world income had it been his total income the same proportion as his total income bears to his total world income.
[Section 17(1), 1st proviso, latter part]
(4) Where any person referred to in sub-section (1) satisfies the Income-tax Officer that he was prevented by sufficient cause from making the declaration referred to in that sub-section or in any similar provision of the Indian Income-tax Act, 1922 (11 of 1922), on the first occasion on which he became assessable under this Act or the said Act as the case may be, and his failure to make such declaration has not resulted in reducing his liability to tax for any year, the Income-tax Officer may, with the previous approval of the Inspecting Assistant Commissioner, allow such person to make the declaration at any time after the expiry of the period specified, and such declaration shall have relation to the assessment for the year in which the declaration is made (if such assessment had not been completed before such declaration) and all assessments thereafter.
[Section 17(1), 2nd proviso]