UNIT 1

1. Write short notes on previous year.

Income earned in a year is taxable in the next year. The year in which income is earned is
known as previous year and the next year in which income is taxable is known as assessment
year. In other words, previous year is the financial year immediately preceeding the
assessment year.

Illustration 1.1 - For the assessment year 2014-15, the immediately preceding financial year
(i.e., 2013-14) is the previous year.
Income earned by an individual during the previous year 2013-14 is taxable in the
immediately following assessment year 2014-15 at the rates applicable for the assessment
year 2014-15. Similarly, income earned during the previous year 2014-15 by a company will
be taxable in the assessment year 2015-16 at the rates applicable for the assessment year
2015-16. This rule is applicable in all cases.

2. Write short notes on Assessment year.

Assessment year” means the period starting from April 1 and ending on March 31 of the next
year.
Example- Assessment year 2014-15 which will commence on April 1, 2014, will end on
March 31, 2015. Income of previous year of an assessee is taxed during the next following
assessment year at the rates prescribed by the relevant Finance Act.

3. Income earned during a previous year is normally charged to tax in the financial
year next following it. What are the exceptions to this rule?

Following exceptions have been provided to protect the collection of taxes and other
dues so that assessee, who may not be available later on, are not permitted to escape
the payment of taxes. The exceptions are as follows:
(i) Income from Shipping Business of Non-Residents (Sec. 172) : Seven and half
percent (7.5%) of the total freight including demurrage charge and handling charge,
earned at Indian port by the owner or charter or any other person on their behalf, shall
be deemed to be the taxable income.
(ii) Income of Persons Leaving India (Sec. 174) : If it appears to the Assessing
Officer that any individual may leave India and that he has no present intention of
returning to India, the total income of such individual upto the probable date of his
departure from India shall be assessed to income tax in that assessment year.
(iii) Persons Transferring Property to Avoid Tax or Persons Trying to Alienate
their Assets with a View to Avoid Tax (Sec. 175) : The total income of such person
upto the date when the Assessing Officer commences proceedings against them/him,
shall be chargeable to tax in that assessing year.
(iv) Income of Discontinued Business or Profession (Sec. 176) : In such a case, the
Income of the period from the expiry of the previous year for that assessment year up
to the date of such discontinuance may, at the discretion of the Assessing Officer, be
assessed in that assessment year.
(v) Assessment of Association of Person or Body of Individual or Artificial
Juridical Person formed for a particular event or purpose (Sec.174 A) : Where it

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 appears to the assessing officers that any association of person or a body of individual
or an artificial juridical person formed or established or incorporated for a particular
event or purpose is likely to be dissolved in the assessment year in which such
association of person or body of individual or artificial juridical person was formed or
established or incorporated or immediately after such assessment year, the total
income of such person or body or juridical person, for the period from the expiry of
the previous year for that assessment year upto the date of its dissolution, shall be
chargeable to tax in that assessment year.
Example: If AOP which is formed in the previous year 2013-14 is going to be
dissolved on 15-05-2014 than the income of the period 1-4-2014 to 15-05-2014 shall
be charged to income tax in the previous year 2014-15 itself.
4. Define ‘Person’ and explain briefly each category.
Ans: According to Sec2(31) “Person” includes —
(i) an individual,
(ii) a Hindu undivided family,
(iii) a company,
(iv) a firm
(v) an association of persons or a body of individuals, whether incorporated or
not, whether for profit or not
(vi) a local authority, and
(vii) every artificial juridical person, not falling within any of the preceding sub-
clauses;

These are briefly explained as under—

(1) An Individual: Includes male, female, minor child, a lunatic.
(2) A HUF: A family which consists of all persons lineally descended from
common ancestor including wives and unmarried daughter. The principal of
HUF is called “Karta” and its members are called “Co-parceners”.
(3) A Company: Incorporated association under the Companies Act, 1956 or any
other law.

(4) A firm: A partnership firm registered under Partnership Act, 1932

(5) Association of Persons: An AOP must be one in which two or more or A
body of Individuals persons join in for a common purpose or common
action, the object of which is to produce income, profit and gains. Though a
body of individual is not identical with an AOP, they have some similarities.
An AOP may consist of non-individuals also but ‘body’ would require an
association for some common purpose or for a common cause or there must
be unity under some common occupation. A mere collection of individuals
without a common occupation/aim cannot be taken to be a body of
individual falling within Sec. 2(31).
(6) A Local Authority: Municipality, Cantonment Board, District Board, Port
Trust, Gram Panchayat etc.
(7) Every artificial juridical person: A Hindu idol or a deity or god or allah. It
also includes all artificial person with a juridical personality, such as a Bar
Council, a University, Life Insurance Corporation.

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 5. Write a short note on Assessee

“Assessee” means a person by whom any tax, or any other sum of money is payable
under the Act and it includes:
(i) A person by whom any tax or any other sum (including interest and penalty) is
payable under the Act.
(ii) Every person in respect of whom any proceeding has been taken under the
Act (a) for the assessment of his income or the income of any other person in
respect of which he is assessable or (b) of the loss sustained by him or by such
other person, (c) the amount of refund due to him or such other person.
(iii) A person who is deemed to be an assessee under any provision of the Act.
(iv) Every person who is deemed to be an assessee in default under any provision
of this Act.
Important Note: Every assessee is a person but person need not be an assessee.

6. Write short notes on Gross Total income

As per section 14, the income of a person is computed under the following five heads:
1. Salaries.
2. Income from house property.
3. Profits and gains of business or profession.
4. Capital gains.
5. Income from other sources.
The aggregate income under the above five heads, after applying clubbing provisions and
making adjustment of set off and carry forward of losses, is termed as “Gross Total Income”
[Sec80B(5)]. In other words, gross total income means total income computed in accordance
with the provisions of the Act before making any deduction under sections 80C to 80U.

7. Write a short note on Total Income.

The total income of an assessee is computed by deducting from the gross total income
all deductions permissible under Chapter VIA of the Income-tax Act i.e. deductions
under section 80C to 80U.

8. How is Residential status of an assessee determined?

The “residential status” is absolutely different from the term “citizenship”. A person may
be Indian citizen but may not be resident in India. Similarly, a person may be a foreign
citizen, but may be resident in India.

For determining the residential status the assessees are divided into following two
categories:
(i) Resident in India
(ii) Non Resident in India.

However in case of individual and Hindu undivided family resident assessee may be
further classified into following two categories:

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 a. Ordinarily Resident in India
b. Not-ordinarily Resident in India

The following must be kept in mind while determining the residential status:
 The residential status of a person is always determined for the previous year to be
chargeable to tax during the assessment year.
 Residential status of an assessee may not be same in each year. An assessee who
is a ‘resident’ in one year may be ‘Non-resident’ in next year.
 The residence of an assessee has nothing to do with his domicile or nationality.
 A person who is resident in India can become resident in any other country for the
same assessment year.
 Residential status will be determined on the basis of certain conditions for each
person separately.
 Residential status of an assessee will be the same for all sources of income.

9. State the conditions which an individual must fulfil in order to be called

A. Resident
B. Resident and Ordinarily Resident
C. Resident but Not ordinarily resident
D. Non resident

A. Resident [Sec6(1)] : An individual is said to be resident in India in any previous year

if he fulfills any one of the following two basic conditions :
Basic condition 1: He is in India in that year for a period 182 days or more:
Basic condition 2: He is in India for a period 60 days or more during the previous year
and 365 days or more during the 4 years preceding that previous year.
Exception to basic condition 2
Under the following circumstances the period of 60 days as mentioned above will be
extended to 182 days.
(i) An Indian citizen who leaves India during the previous year for the purpose of
employment outside India.
(ii) An Indian Citizen who leaves India during the previous year as a member of the
crew of an Indian ship.
(iii) An Indian Citizen or a person of Indian origin who resides abroad comes to India
on a visit during the previous year.
B. Resident and Ordinarily Resident : Under Sec6(6), a resident individual is treated
as resident and ordinarily resident in India if he satisfies both of the two additional
conditions:
Additional Condition(i) he has been resident in India in at least 2 out of the 10
preceding previous years; and
Additional Condition(ii) he has been in India for a period of 730 days or more during the
7 preceding previous years.

C. Resident but Not Ordinarily Resident [Sec6(6)(a)]: In addition to fulfilling at least

one of the above basic conditions, in case an individual fulfills any of the following

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conditions, he will be treated as “Resident but Not Ordinarily Resident” in India in that
previous year :
a) he has been a non-resident in India in 9 out of the 10 preceding previous years; OR
b) he has been in India for a period of not exceeding 729 days during the 7 preceding
previous years.
D. Non Resident : If an individual does not satisfy at least one of the basic conditions,
he shall be considered as non-resident. Additional conditions are not relevant in case of
non-resident.

Note :
(i) Person shall be deemed to be of Indian Origin, if he, or either of his parents or any of
his grandparents was born in undivided India.
(ii) For the purpose of calculation of residential status u/s 6 of the Income-tax Act, the day
on which the applicant entered India as well as the day on which he left India should be taken
into account. If hourly data is given then physical presence in India should be determined on
hourly basis. A total of 24 hours will be treated as one day.

(iii) Continuity of stay and stay at one place is not necessary.

10. How is the residential status of HUF determined?

HINDU UNDIVIDED FAMILY is either resident or non resident in India. A resident HUF is
either ordinarily resident or not ordinarily resident in India.

Resident [Sec6 (2)]: A Hindu undivided family is said to be resident in India if control and
management of its affairs is wholly or partly situated in India.
Non-Resident: The Hindu undivided family is non-resident in India if control and
management of its affairs is wholly situated outside India.
Resident and Ordinarily Resident: Under Sec6 (6)(b), a resident HUF is treated as
ordinarily resident in India if the Karta or manager of the family satisfies two additional
conditions:
Additional Condition (i) he has been resident in India in at least 2 out of the 10
preceding previous years; OR
Additional Condition (ii) he has been in India for a period of 730 days or more during
the 7 preceding previous years.
If the Karta or manager of the family does not satisfy two additional conditions, the HUF
shall be considered as “Not Ordinarily Resident”.

11. How is the residential status of Firm and AOP determined?

A partnership firm or an association of person is said to be RESIDENT, in India if control

and management of its affairs are wholly or partly situated inside India during the relevant
previous year. It will, however, be treated as NON-RESIDENT in India if control and
management of its affairs are situated outside India.

12. How is the residential status of Company determined?

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A company incorporated under Indian Companies Act, 1956 is always resident in India. Any
other foreign company is resident in India if, during the previous year the control and
management of its affairs are situated wholly in India. Usually control and management of a
company’s affairs is situated at the place where meeting of its board of directors are held.

13. Explain how the tax liability of an assessee is determined with reference to his
residence.

Or

What is the relationship between residential status and incidence of tax?

Tax liability of an assessee varies with his residence or residential status. Hence, the first
inquiry should be about residence of the assessee. Once the residential status of a person is
determined in accordance with sec. 6 of the Income-Tax Act, the income chargeable to tax as
part of total income shall be identified as follows under Sec 5:—

Particulars Resident Resident but not Non-

Ordinarily resident resident
(i) Income received or deemed to be Taxable Taxable Taxable
received in India whether accrued in
India or outside India.

(ii) Income accruing or arising or Taxable Taxable Taxable

deemed to accrue or arise in India
whether received in India or outside
India.

(iii) Income earned and received Taxable Taxable Not

outside India, from business controlled Taxable
from India or Profession set up in
India.

(iv) Income earned and received Taxable Not Taxable Not

outside India, from business controlled Taxable
in or Profession set up outside India.

(v) Income which accrue or arises Not Not Taxable Not

outside India and received outside Taxable Taxable
India during the year preceding the
previous year and remitted to India
during the previous year

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14. List the Incomes that are exempted from under Section 10.
 Agriculture Income Sec. 10(1)
 Amount received by a member from HUF [Sec. 10(2)]
 Partner’s share in the firm [Sec. 10(2A)]
 Interest on certain Bonds, Securities, Certificates or Deposits [Sec. 10(4)]
 Leave travel concession or assistance received by an individual from employer or
former employer [Sec10(5)]
 Remuneration received as an official or as member of staff of the officials of an
embassy, high commission, consulate or trade representative of foreign state
[Sec10(6)]
 Foreign Allowances paid or allowed by the govt. of India to its employees outside
India. [Sec10(7)]
 Remuneration from foreign govt. for duties assigned in India and any other income
accrues or arises outside India. [Sec10(8)]
 Any income accrues or arises outside India[Sec10(9)]
 Death cum Retirement Gratuity received by an employee[Sec10(10)]
 Commuted Pension[Sec10(10A)]
 Leave Encashment[Sec10(10AA)]
 Compensation/award received at the time of his retrenchment[Sec10(10B)]
 Any payment received under Bhopal Gas Leak Disaster [Sec10(10BB)]
 Any compensation received from State or Central Government on account of any
disaster[Sec10(10BC)]
 Amount received on voluntary retirement[Sec10(10C)]
 Tax on income derived as perquisite[10(10CC)]
 Amount received under life insurance policy including any bonus allotted on such
policy[Sec10(10D)]
 Amount received from provident funds[Sec10(11)]
 Any payment received from Superannuation Fund[Sec10(13)]
 House Rent allowance[Sec10(13A)]
 Special allowance granted to meet expenses incurred in performance of
duties[Sec10(14)]
 Interest, premium or bonus from exempted(specified) securities[Sec10(15)]
 Scholarship granted to meet the cost of education[Sec10(16)]
 Daily allowances or constituency allowance [Sec10(17)]
 Awards and Rewards [Sec. 10 (17A)]
 Pension or family pension received by the family member of gallantry award winners.
[Sec10(18)]
 Family pension received by family members of armed force or paramilitary force.
[Sec10(19)]
 Income of panchayat, municipality, municipal committee, district Board or
cantonment board[Sec10(20)]
 Any Income of an approved Research Association[Sec10(21)]

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 Income of a news agency [Sec. 10(22B)]
 An association or institution set up in India for specified professions. [Sec. 10(23A)]
 Income received on behalf of fund established for notified purpose by Board for
welfare of employees or their dependents. [Sec. 10(23AAA)]
 Any fund set up by LIC or other insurer [Sec. 10(23AAB)]
 Institution for development of Khadi and Village Industries [Sec. 10(23B)]
 Any income from European Economic community[Sec10(23BBB)]
 Any income from SAARC Fund for regional projects [Sec10(23BBC)]
 Any income from Insurance regulatory and Development Authority[Sec10(23BBE) ]
Income received by any person on behalf of National Relief Fund, approved public
charitable institutions, educational institute and hospital. [Sec10(23C) ]
 Any income Specified Mutual funds [Sec10(23D) ]
 Any income Investor protection fund [Sec10(23EA)]
 Venture Capital Funds [Sec. 10(23FB)]
 Trade Unions [Sec. 10(24)]
 Provident fund, Superannuation fund, Gratuity fund, Coal Mines P.F., employees
PF[Sec. 10(25)]
 An income of Sikkimese individual[Sec. 10(26)]
 Agricultural Produce Market Committee or Board [Sec. 10(26AAB)]
 Government corporation or any association, body, institution wholly financed by
government [Sec. 10(26B)]
 Government corporation formed by State or Central Government [Sec. 10(26B)]
 corporation formed by State or Central or Provincial Act [Sec. 10(26BBB)]
 Any income of a co-operative society [Sec. 10(27)]
 Any income of various Boards or authorities established under various Acts[Sec.
10(29A)]
 Subsidy received from Tea Board. [Sec. 10(30)]
 Subsidy received by planters form concerned Board[Sec. 10(31)]
 Income included in assessee’s income u/s 64(1A) to the extent it does not exceed Rs.
1500/- for each minor child. [Sec. 10(32)]
 Income arising from transfer of units held as capital assets of Unit Scheme, 1964.
[Sec. 10(33)]
 Dividend [Sec. 10(34)]
 Income received in respect of Units of specified mutual fund, [Sec. 10(35)]
 Long term capital gains on transfer of eligible equity shares [Sec. 10(36)]
 Capital gains arising out of sale of agricultural land[Sec. 10(37)]
 Long term capital gains on sale of equity shares or units of equity oriented fund [Sec
10(38)]
 Specified income out of international sporting events [Sec. 10(39)]
 Income received from Indian holding company [Sec. 10(40)]
 Income of Notified body or authority [Sec. 10(42)]

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  Notified allowance or perquisites of Chairman or member (including retired one) of
union public service commission [Sec. 10(45)]
 Specified income of any body, authority, Board or Trust [Sec. 10(46)]
 Any income of Infrastructure debt fund [Sec. 10(47)]

15. Write a short note on Agriculture Income.

According to Sec. 2(1A) Agricultural Income means:

a) Any rent or revenue derived from land, which is situated in India and is used for
agricultural purposes.
b) Any income derived from such land by agricultural operations including processing
of the agricultural produce raised or received rent-in-kind so as to render it fit for the
market for sale of such produce; and
c) Income attributable to a farm house subject to the condition that the building is
situated on or in the immediate vicinity of the land and used as a dwelling house,
store house or other out building and the land is assessed to land revenue or a local
rate or in the alternative, the building is situated on or in the immediate vicinity of
land which (though not assessed to land revenue or local rate) is situated outside the
urban areas, i.e. any area which is comprised within the jurisdiction of a municipality
or cantonment board having a population of ten thousand or more or in any area
within eight kilometers from the local limits of such municipality or cantonment
board.
d) Income derived from saplings or seedlings grown in a nursery shall be deemed to be
agricultural income.
IMPORTANT:
Sec. 10(1) exempts agricultural income from income tax. But it is taken for rate purpose. It
means that agricultural income is included for determining the average rate of non-
agricultural income in certain cases.

16. How is tax computed on Agriculture income?

Computation of tax: The following steps should be followed to calculate the tax:
Step 1: Calculate tax (at current rates) on aggregate of agriculture income and non-
agriculture income.
Step 2: Calculate tax (at current rates) on aggregate of maximum exemption limit and
agriculture income.
Step 3: Income tax payable (step 1 - step 2)
Step 4: Deduct amount of rebate u/s 88, 88B, 88C, 88D
Tax Payable
Add: Surcharge
Total Tax Payable

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Example: Total Income of Mr. Ram who is below 60 years is computed under Income-tax
Act, for the assessment year 2013-14 is Rs. 5,90,000. Compute the tax payable by Ram
assessing that he has agricultural income of (a) Nil; (b) Rs. 5,000 and (c) Rs.10,000.

Solution: (a) and (b) Since the agricultural income is either Nil or does not exceed Rs. 5,000,
List incomes have been held to be agricultural income
Ans: Following incomes have been held to be agriculture income
 Remuneration and interest on capital received by a partner from a partnership firm
engaged in agricultural operation.
 Income from sale of seeds.
 Compensation received from insurance company for damage caused to the agriculture
produce;
 Income from growing flowers and creepers.

17. List the incomes have been held to be non-agricultural income

ANS: FOLLOWING INCOMES HAVE BEEN HELD TO BE NON-AGRICULTURAL
INCOME
 Income from stone quarries.
 Income from breeding of livestock.
 Income from dairy farming, butter and cheese making.
 Income from poultry farming.
 Income from fisheries.
 Income from brick making.
 Income from supplying surplus water to other agriculturists.
 Profits on sale of standing crops/agricultural produce purchased by the assesee.
 Income derived from letting out of land/godown for storing crops.
 Income from sale of forest, trees, wild grass, fruit and flowers grown
spontaneously and without human effort.
 Income from salt produced by flooding the land with sea water and then extracting
salt there from.
 Preservation of potatoes by refrigeration as it is not a process ordinarily employed
by a cultivator.
 Royalty income of mines.
 Annuity payable to vendor of agricultural land or payable to a person giving up
his claims to piece of agricultural land. Harvest crop on purchased land.
 Compensation or damages paid for loss of agricultural income due to late payment
of installments of the consideration price of rubber plantation site.
 Registration fee collected from the contractor who is bidding at the auction
conducted for sale of plantation is not an agricultural income as such registration
fee had no nexus with land.

18. How to compute Total Income?

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Before filing return in the income tax department a statement showing computation of total
income is to be submitted along with the ROI (Return of Income). Here is given a brief
presentation of Computation of Total Income:

  
Particulars
a)      Income from Salaries
Basic Salary/Bonus/Commission etc.      xx
Taxable Allowances                              xx
Taxable Value of Perquisites                 xx
          Gross Salary                                            xx
Less: Deductions u/s 16
-Entertainment Allowance           xx
           -Professional Tax                        xx                     xx 
Net Taxable income from salary xx
 
 b)      Income from House Property
Gross Annual Value                              xx
Less: Municipal Taxes paid                     x
 Net Annual Value                             xx
Less: Deduction u/s 24               xx                                  xx
 
 c)      Profits and Gains of Business or Profession
      Net Profit as per P/L A/c                      xxx
      Add: Amount shown as expenses
               but not allowed                              xx
                                                                  xxx
      Less: Expenses allowed but not
                claimed.                                        xx      
                                                                  xxx
      Add: Incomes not shown in the P/L
               A/c but taxable                              xx
                                                                  xxx
      Less: Incomes shown in the P/L
               A/c but not taxable                        xx                               xxx
 
d)      Capital Gains
Sale Consideration                                xxx
Less: Expenses on transfer                      xx
Net Sale Consideration             xxx
Less: Cost of acquisition/improve.           xx
            Capital Gains                            xxx
Less:Exemptions u/s 54/54B/54D, etc(if any)                        xx                               xxx
  
e)      Income From Other Sources                                                       xx
 
Gross Total Income [(a) + (b) +(c) + (d) + (e)]                                             xxx
Less: Deduction u/s 80C to 80U (Chapter VIA)                                             xx
            Total Income                                                               xxx

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 PROBLEMS

Problem 1:
Miss Deepali Singh teacher in a public school, made available the following information for
the year ending 31st March, 2013: Rs.
(i) Income from salary computed as per Income-Tax Act 1,60,000
(ii) Income from letout property computed as per Income Tax Act (10,000)
(iii) Long term capital gain computed as per Income-Tax Act 20,000
(iv) Winning from Punjab State lottery 10,000
(v) Interest income from loan to relatives 15,000
(vi) Deductions computed as per Chapter VIA of Income Tax Act :
u/s 80G Donation to notified temple 5,100
u/s 80D Payment of health insurance premium of herself 5,128
su/s 80E Payment in respect of repayment of loan taken for 16,000
higher education
(vii) She is also eligible for rebate u/s 88 for amount deposited in
Public Provident Fund 10,000
Prepare statement of Total Income of Miss Deepali.

Problem 2 :
Miss Anju a citizen of India went to California for business purposes on 1-1-2008. She was
never been out of India in the past. During previous year 2008-09, 2009-10, 2010-11,2011-
2012 and she has been in India for 100 days every year. She returned to India to settle
permanently here on 20-12-2009. Determine her residential status for the assessment year
2013-14.
Would it make any difference if she comes to India on 1-1-2013 for three months on visit and
not to settle here?
Solution:
(i) When Miss Anju returned to India to settle permanently – She resided in India
during the previous year (2012-13) for more than 60 days and more than 365 days
in past four years preceding the previous year.
She had been a resident for at least 2 years out of 10 preceding previous years.
Also, she was in India for more than 729 days during 7 preceding previous years
Therefore, the status of Miss Anju is ordinarily resident in India.
(ii) When Miss Anju returns to India for a visit – She resided in India during the previous
year (2009-10) for 90 days and more than 365 days in past four years preceding the
previous year.

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 But in case an Indian citizen comes on a visit to India in any previous year his stay in
India should be more than 182 days, thus status of Miss Anju is non-resident.

Problem 3:
Arvind leaves India permanently on 15th Sep 2012. Which financial year shall be the
assessment year in this case?

Ans: Assessment year will be 2012-2013.

Problem 4:
The following are the particulars of income of Rakesh for the previous year 2009-10 :
(a) Rent from property in Delhi received in London 18,000
(b) Income from a business in Canada controlled from Delhi 22,000
(c) Income from business in Jaipur controlled from U.S.A. 38,000
(d) Rent from a property in U.S.A. received there but subsequently remitted to India.
60,000
(e) Interest from deposits with an Indian company received in U.S.A. 4,000
(f) Profits for the year 2008-09 of a business in U.S.A. remitted to India during the
previous year 2009-10 (Not taxed earlier) 17,500
(g) Gifts received from his parents. 44,500
(h) Interest payable by Punjab Government, received in USA. 10,000
Compute his Income for the assessment year 2010-11 if he is :
(i) resident and ordinarily resident in India.
(ii) resident but not ordinarily resident in India
(iii) non-resident in India.

Solution : Statement of Gross Total Income or Mr. Rakesh for the Assessment Year 2010-11

Statement of Gross Total Income or Mr. Rakesh for the Assessment Year 2010-11
Particulars Resident Resident but not Non-
Ordinarily resident resident
(1) Income earned/deemed to
Accrue/arise in India
18,000 18,000 18,000
Rent from property in Delhi
38,000 38,000 38,000
Income from business in Jaipur
4000 4000 4000
Interest from Indian company
10000 10000 10000
Interest from Punjab Government
(2) Income earned and received
outside India, from a business
controlled from India
Income from business in Canada. 22000 22000 -
(3) Income earned and received
outside India other than (2) 60,000 - -
Rent from property in U.S.A.

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 Total 1,52,000 92,000 70,000
Note :
1. Profits of 2008-09 are not income of the previous year 2009-10 and hence cannot be
included in the income for assessment year 2010-11.
2. Gifts received are capital receipts and are not regarded as income.

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