In this paper we show how relativistic effects can be included in the time-dependent density-functional theory (DFT) for the optical response properties of nonmetallic crystals. The dominant scalar relativistic effects have been included using the zeroth-order regular approximation (ZORA) in the ground-state DFT calculations, as well as in the time-dependent response calculations. We show that this theory can also be applied to indium antimonide in the zinc-blende structure, notwithstanding the fact that it turns into a semimetal when scalar relativistic effects an included. Results are given for the band structure, the static dielectric constant epsilon (infinity) and the dielectric function epsilon(omega), for the various levels on which relativity can be included, i.e., nonrelativistic, only in the ground-state, or also in the response calculation. Comparisons of our calculated results are made with experiment and other theoretical investigations. With the inclusion of scalar relativistic effects, the band structure of InSb becomes semimetallic within the local density approximation and we find a deviation of 5% from experiment for the static dielectric constant. Also the dielectric function is improved and the spectra are in good agreement with experiment, although the spectral features are shifted to somewhat lower energies compared to experiment. (C) 2001 American Institute of Physics.