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Residential Status True or False

This document contains 22 statements related to determining residential status and taxability of income in India. 12 of the statements are false, including statements related to once being a resident always being one, residential status being determined solely by citizenship, and foreign income treatment for ordinary residents and non-residents. 10 statements are true, including those related to income deemed to accrue or arise in India always being taxable, residential status changing yearly, and an Indian citizen can be non-resident.

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Sarvar Pathan
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255 views2 pages

Residential Status True or False

This document contains 22 statements related to determining residential status and taxability of income in India. 12 of the statements are false, including statements related to once being a resident always being one, residential status being determined solely by citizenship, and foreign income treatment for ordinary residents and non-residents. 10 statements are true, including those related to income deemed to accrue or arise in India always being taxable, residential status changing yearly, and an Indian citizen can be non-resident.

Uploaded by

Sarvar Pathan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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TRUE OR FALSE

1. Once a person is a resident in a previous year he shall be deemed to be resident for


subsequent previous years.

2. Once a person is a resident for a source of income in a particular year he shall be deemed
to be resident for all other sources of income in the same previous year.

3. A resident in India cannot become resident in any other country for the same assessment
year.

4. Residential status is to be determined on the basis of stay in India during assessment year.

5. Incomes which accrue or arise outside India but are received directly into India are
taxable only in case of resident.

6. Income deemed to accrue or arise in India is taxable in case of all the assessees.

7. Income which accrues or arise outside India from a business controlled from India is
taxable case of only not ordinarily resident.

8. Income which accrues or arises outside India and also received outside India is taxable in
case of both ordinarily resident and not ordinarily resident.

9. Total income of a person is determined on the basis of his citizenship in India.

10. Residential status of a person may change from year to year.

11. An Indian citizen may be a non-resident in India.

12. Residential status is important in deciding whether indian income of a person is taxable
or not.

13. A person is deemed to be of "Indian origin", if his father was born in Pakistan in 1927.

14. A person is deemed to be of "Indian origin", if his mother was born in Nepal.

15. A person is deemed to be of "Indian origin", if his grandmother was born in Bangladesh

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in 1945.

16. A person is deemed to be of "Indian origin", if his grandfather was born in Sri Lanka in
1957.

17. While counting the number of days for determining residential status, a stay in a cruise
boat anchored in the Mumbai Port is treated as stay in India.

18. Indian income is taxable in all cases, whether of an ordinary resident, or a not-ordinary
resident, or a non-resident.

19. Foreign income of an ordinary resident is wholly taxable.

20. Foreign income of non-resident is not taxable at all.

21. Income accruing outside India will be deemed to be received in India if it is included in a
balance sheet prepared in India.

22. If an income is included in the total income of a person on the basis of accrual, it may be
included again on the basis of its receipt in subsequent period.

Answer
True - 2,6,10,11,13,15,17,18,19,20
False - 1,3,4,5,7,8,9,12,14,16,21,22.

4. False; During Previous Year


5. False; all the assesses
7. False; both ordinarily resident and not ordinarily resident
8. False; resident only
9. False; residential status in India
12.False; residential status is important in deciding whether foreign income of a person is taxable
or not.
21. False; Income accruing outside India will not be deemed to be received in India merely
because cannot be included again on the basis of its receipt in subsequent period (Explanation 2
to S.5)

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