RESIDENTIAL STATUS

1. Mr. X, partner of M/s XYZ, is assessable as –

a) Firm b) Individual c) HUF d) None of the above
2. For the purpose of levying tax on income other than agricultural income, Union List
contained entry ________.
a) 82 b) 92D c) 92C d) 92E
3. _________ is not a head of income.
a) Income from House Property c) Income from Interest on securities
b) Salaries d) Capital Gains
4. If total income of a person is Rs. 2,67,888.34, it shall be rounded off to –
a) Rs. 2,67,888/- b) Rs. 2,67,890/- c) Rs. 2,67,880/- d) Rs.
2,67,889/-
5. Income tax is a –
a) Indirect Tax b) Entertainment Tax c) Direct Tax d) State Tax
6. A______________ means A Company which is not a domestic company
7. Income received in india in previous year is taxable in the hands of
(a) resident (b) not resident (c)Non ordinarily resident (d) All above
8. An individual (aged 28 years born in india left for employment in France on 30.10.2012.
his visit outside india is for the first time. His residential status for the Assessment year
will be _______________
9. The basic exemption limit for a Non resident women who is 70 years old for the
AY2013-14 is __________
10. The charging section of the Income tax Act is______________
11. Deduction of profit and gains derived from export under section 10AA available to SEZ
units is for ___________years
12. Incomes which accrue or arise outside india but are received directly in india are taxable
in case of
(a) Residents only (b) Non residents (c) All assesses (d) RNOR
13. R.Ltd is registered in UK its control and management is wholly situated in india. R.Ltd
Shall be
(a) resident in india (b) non resident in india
(c)Resident but not ordinarily resident
(d) resident in india if other certain conditions are satisfied
14. The basic exemption limit for a non resident super senior citizen above the age of 80
years for the AY 2012-13 is_________
15. Rent derived from land located outside india, used exclusively for agricultural purpose is
(a) Agriculture income (b) Exempt income
(c)taxable as business income (d) taxable under the head of income from other sources
16. Dividend income declared by domestic companies shall be exempt in the hands of share
holders U/s 10 (34) and taxable in hands of companies U/s 115-O
17. In case of an assess is a resident and ordinary resident his global income is taxable.
18. Royalty income arising out of rights used for business or profession carried on in India
is always taxable in India in all cases.
19. A person is considered as person of Indian origin if he, his parents or grand parents were
born in undivided India.
20. Finance Bill becomes the Finance Act when it is passed by:
a) The Lok Sabha
b) Both the Lok Sabha and Rajya Sabha
c) Both the Houses of Parliament and given the assent of the president
d) Both the Houses of Parliament and given the assent of the Prime Minister/Finance
Minister
21. The incidence of taxation depends on the –
a) Residential status of the assessee c) Citizenship of the as assessee
b) Accommodation of the assessee d) Marital status of the assessee
22. Income accruing in Sri Lanka and received in India is taxable in India in case of –
a) Resident and ordinary resident only c) Resident but not ordinary resident
b) Non resident d) All assessee irrespective of his residential status
23. A person is said to be a person of Indian origin if –
a) He or either of his parents were born in undivided India
b) He or either of his siblings were born in undivided India
c) He or either of his parents or either of his grandparents were born in
undivided India
d) He was born in India
24. An individual is said to be a resident in India in the previous year (in which the Feb
month has 29 days) if he is in India in that year for a period of ___.
a) 182 days or more b) 183 days or more c) 70 days or more d) 150 days or more
25. Income accrued and received out of India, from a business controlled from Tokyo, in the
previous year is taxable in the hands of –
a) Resident and Ordinarily Resident c) All assessee irrespective of residential
status
b) Non-Resident d) Non-ordinarily resident
26. The circular issued by CBDT are binding on:
a) Assessee b) Income-tax Authorities c) Both the above
27. Surcharge in case of a foreign company is payable at the rate of:
a) 2% of the income-tax payable provided its total income exceeds Rs 1crore
b) 2% of the income-tax payable irrespective of the amount of its total income
c) 2% of the income-tax payable provided its total income exceeds Rs 1crore and
5% of income tax if total income exceeds Rs 10crores.
28. Surcharge on income tax is payable by:
a) All assesses except a foreign company
b) Individual and HUF only
c) All assesses except local authority or co-operative society
d) All assesses provided their total income exceeds a certain amount.
29. The total income of the assessee has been computed as Rs 3,83,494.90. For rounding off,
the total income will be taken as:
a) Rs 3,83,500 b) Rs 3,83,490 c) Rs 3,83,495
30. The total income of the assessee has been computed as Rs 4,83,495. For rounding off, the
total income will be taken as:
a) Rs 4,83,500 b) Rs 4,83,490 c) Rs 4,83,495
31. Income-tax is rounded off to:
a) Nearest ten Rupees b) Nearest one Rupee c) No rounding off of tax is done
32. An assessee is always a ------------------
33. A new business was set up on 16.12.2015 and it commenced business from 15.01.2016.
The first previous year in this case shall be from ----------- to -------------.
34. A person leaves India permanently on 15.07.2015. The assessment year for income
earned till 15.07.2015 in this case shall be --------------.
35. Residential status is to be determined for:
a) previous year b) assessment year c) accounting year
36. Incomes which accrue or arise outside India but are received directly into India are
taxable in case of:
a) resident only c) non-resident
b) both ordinarily resident and not ordinarily resident d) all the assesses
37. Income deemed to accrue or arise in India is taxable in case of:
a) resident only c) non-resident
b) both ordinarily resident and not ordinarily resident d) all the assesses
38. Income which accrue or arise outside India from a business controlled from India is
taxable in case of:
a) resident only d) both ordinarily resident and not ordinarily reside
b) not ordinarily resident only e) all the assesses
c) non-resident
39. Income which accrue or arise outside India and also received outside India is taxable in
case of:
a) resident only c) both ordinarily resident and not ordinarily resident
b) not ordinarily resident d) none of the above
40. Total income of a person is determined on the basis of his:
a) residential status in India c) none of the above
b) citizenship in India d) both of the above
th
41. R was born on 5 April, 1991 in India & he later on took the citizenship of U.S.A.
Neither his parents nor his grand parents were born in divided/undivided India. R in this
case shall be:
a) citizen of India b) person of India origin c) a foreign national
42. R was born in India in 1988. His parents were born in India in 1951. His grand father was
born in Lahore in 1936 but his grand mother was born in England in 1940. R will be:
a) a citizen on India b) person of India origin c) none of these
(What will be your answer if the parents of R along with R have taken the citizenship
of England.)
43. Dividend paid by an Indian company outside India is:
 a) taxable in India in the hands of the recipient
b) exempt in the hands of recipient
c) taxable in the hands of the company and exempt in the hands of the recipient
44. Where a non-resident has a business connection in India but its operation are confined to
purchase of goods in India for the purpose of export, such income shall-
a) be taxable in India as it is deemed to accrue or arise in India
b) not be taxable in India as it shall not be deemed to accrue or arise in India
c) be taxable as it is accrues or arise in India.
45. Royalty paid by a resident in India to a non-resident outside India-
a) shall be taxable in India in the hands of non-resident unless it is paid for the
acquisition to any right/information/property used for the purpose of business or
profession carried on outside India.
b) shall be taxable in India whether such right/information/property for which royalty
was paid, was used by the resident for the purpose of carrying on business or
profession in India or outside India.
c) shall not be taxable in India.
46. Fee for technical services paid outside India by a non-resident in India to a non-resident
in India shall-
a) not be taxable in India;
b) be taxable in India provided the know-how for which royalty was paid, was used for
the purpose of carrying on any or profession or earning a source of income in India.
c) be taxable in India provided the know-how, for which royalty was paid, was used
for the purpose of carrying on any business or profession in India.
47. Interest payable outside India by a non-resident in India to a non-resident in India shall-
a) not be taxable in India
b) be taxable in India provided the interest is paid in respect of money borrowed and
used for a business or profession carried on in India or earning from any source of
income in India
c) be taxable in India provided the interest is paid in respect of money borrowed and
used for a business or profession carried on in India.

WRITE TRUE OR FALSE

48. Once a person is a resident in a previous year, he shall be deemed to b resident for
subsequent previous year also
49. Once a person is resident for a particular 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
50. A resident in India cannot become resident in any other country for the same assessment
year
51. No person other than individual or HUF can be “resident but not ordinarily resident in
India”
52. An Indian company is always resident in India.
53. A foreign company in always non-resident in India
54. Salary payable by a company to an Indian citizen for services rendered outside India is an
income which is deemed to accrue or arise in India.
55. Salary payable by the Government to an Indian citizen who is non-resident in India for
service rendered outside India is not taxable in India.
56. Once a person is a not ordinary resident in a previous year, he shall be deemed to be not
ordinary resident for subsequent previous year also.
57. Any person can be “not ordinarily resident in India”.
58. R Ltd., is registered in Germany. The place of its effective management in the previous
year is situated in India. R Ltd. shall be non-resident in India.

FILL IN THE BLANKS

59. In case of a company, income from business in USA is taxable in India if residential
status of such company is resident.
60. The Residential status of an assessee is determined for the relevant previous year.
61. Income-tax shall be rounded off to the nearest multiple of Rs. 10.
62. Rebate u/s 87A is available if total income of a resident individual does not exceed Rs.
5,00,000.
63. In case of an Indian citizen who ------------ India during the previous year ------------
outside India the period of 60 days shall be substituted by ---------days.
64. An individual shall be deemed to be of ----------origin if he or any of his ------------- or ----
---------- were born in ------------- India.
65. HUF is said to be ----------- in India if the ------------ and management of its ------- is
situated ------ or ---------- in India.
66. Foreign company is ------------in India if the place of its ----------- ------------- is situated in
India during the --------- year.
67. Salary payable by the ------------ to an Indian citizen for services rendered -----------India
shall be an income which is deemed to ----------- or ----------- in India.
68. Income which accrue or arise outside India from a business controlled from India is
taxable in case of -------------.

Match the following:-

69.
1 Sec. 2(9) A Previous Year
2 Sec. 2(7) B Heads of Income
3 Sec. 14 C Assessee
4 Sec. 2(24) D Assessment Year
5 Sec. 3 E Income
[1-D, 2-C, 3-B, 4-E, 5-A]
70.
1 Mr. Deepak, who left India first time on A Resident
10/12/2019 for world tour
2 Mr. Sushil, who is in India for 45 days during B Resident but not ordinarily
the previous year resident
3 X Ltd., registered under Companies Act, 2013 C Non-resident
4 Mr. Roshan visits India for the first time on D Resident and ordinarily resident
10/06/2019 for 200 days
[1-D, 2-C, 3-A, 4-B]

71. What are the general points to be kept in mind regarding residential status a
person? [2409]
Residential status is determined in respect of each previous year. In
Different for each
other words, residential status of a person may vary from one
previous year
previous year to another previous year.
Single status for A person can have only one residential status for a previous year i.e.
each source of he cannot be a resident for one source of income and non-resident for
income another source.
Impact of Citizenship and residential status are two different concepts. A citizen
Citizenship of India may not be a resident in India for the purpose of income-tax.
Country Specific A person can have same residential status in more than one country.

PROBLEMS
1. The following are the particulars of income of R for the previous year 2015-16:
RS
a. Rent from a property in Delhi received in USA 80,000
b. Income from a business in USA controlled from Delhi 1,20,000
c. Income from a business in Bangalore controlled from USA 1,80,000
d. Rent from a property in USA received there but subsequently remitted to India 60,000
e. Interest from deposits with an Indian company received in USA 20,000
f. Profits for the year 2014-15 of a business in USA remitted to India during the previous
year 2015-16(Not taxed earlier) 75,000
g. Gifts received from his parents 45,000
Compute his income for the assessment year 2016-17 if he is: Resident and
ordinarily resident in India,

2. During the financial year 2015-16 Anil Kumar had the following income:
RS
a. Salary income received in India for services rendered in Hong Kong 3,90,000
b. Income from profession in India, but received in Germany. 3,60,000
c. Property income in Uganda(out of which Rs 2,40,000 was remitted to India) 5,00,000
d. Profits earned from business in Bangalore 1,50,000
e. Agricultural income in Kenya 1,60,000
f. Profits from a business carried on at Nepal but controlled from India 2,20,000
 Compute the income of Anil Kumar for the assessment year 2016-17 if he is
Resident and Not ordinarily resident

3. R, a German national, comes to India for the first time during 2011-12. During the
previous years 2011-12; 2012-13; 2013-14; 2014-15 he was in India for 156 days, 72
days, 183 days and 161 days respectively. Further during the previous year 2015-16, he is
in India for 84 days.
Determine the residential status of R for the assessment year 2016-17.

4. X came to India from America for the first time on 02.10.2014. He returned to his home
country after staying in India upto 28.09.2015. Will he be a resident in India for the
assessment years 2015-16 and 2016-17?

5. X furnishes the following particulars of his income earned during the previous year
relevant to the assessment year 2017-18:
Rs
Interest on German Development Bonds(two-fifths is received in India) 60,000
Income from agriculture in Bangladesh, received there but later on Rs.50,000 is
remitted to India(agricultural activity is controlled From Bangladesh) 1,81,000
Income from property in Canada received outside India(Rs.76,000 is used in Canada
for meeting educational expenses of X’s daughter in USA and Rs.10,000 is later on
remitted to India) 86,000
Income earned from business in Kampala(Uganda) which is Controlled from
Delhi(Rs.15,000 is received in India) 65,000
Dividend paid by a foreign company but received in India on April 10,2016 46,500
Past untaxed profit of 2007-08 brought to India in 2016-17 10,43,000
Profits from a business in Madras and managed from outside India 27,000
Profits on sale of a building in India but received in Sri Lanka 14,80,000
Pension from a former employer in India, received in Rangoon 36,000
Gift in foreign currency from a friend received in India on January 20,2017 80,000
Find out the gross total income of X, if he is non-resident in India for the
assessment year 2017-18.

6. X, a foreign citizen(not being a person of Indian origin), leaves India for the first time in
the last 12 years, on June 15,2014. During the calendar year 2015, he comes to Indian on
November 20 for a period of 46 days. During the calendar year 2016, he does not come to
India at all. He finally comes back on January 30,2017 at 10.30p.m. Determine his
residential status for the assessment year 2017-18.

7. Mr. Azariya and Mr. Mezak are brothers and they earned the following Income during the
Financial Year 2016-17. Mr. Azariya settled in America in the year 1987 and Mr. Mezak
 settled in Mumbai. Mr. Azariya visits India for 20 days every year. Mr Mezak also visits
America every year for a month. Compute their Total Income for Assessment Year 2017-
2018 from the following information. (Amt in Rs)

S.No Particulars Azariya Mezak

1. Interest on America Development Bonds, 18,000
50% of Interest received in India 46,000
2. Dividend from a Japanese Company received 15,000
in America 10,000
3. Profit on sale of shares of an Indian 75,000
Company received in India 45,000
4. Profit from a business in Mumbai, but -
managed directly from America 10,000
5. Income from a business in Mumbai 28,000
32,000
6. Fees for Technical Services rendered in -
America and received in America. The 1,50,000
services were, however, utilized in India
7. Interest on Savings Bank Deposits in State 12,000
Bank of India, Mumbai 4,500
8. Rent Received in respect of House Property 55,000
at Mumbai 96,000
9. Life Insurance Premium paid - 25,000

8. X is resident and ordinarily resident in India for the assessment year 2017-18. He gives
the following information in respect of his income for the precious year 2016-17.
Rs.
a. Capital gain on sale of a house situated in Pune(sale consideration is received in
Nepal) 10,00,000
b. Salary received in Sri Lanka for rendering service in Tamil Nadu 1,60,000
c. Interest received from Government of India(it is paid to him in Sri Lanka, the
money is utilized by the Government outside India) 2,56,000
d. Royalty received from A Ltd. (a foreign company which is non- Resident in India)
outside India(royalty is paid for a manufacturing Business situated outside India)
92,00,000
Find out the Taxable income of X for the assessment year 2017-18.

9. X comes to India for the first time on September 1,2016. On September 15,2016, he joins
a company on monthly salary of Rs.56,000, as a part-time production consultant(duty
hours:6.30 p.m. to 9.30 p.m.). He does not have any source of income up to September
14,2016. On October 9,2016, he starts a trading business in computer hardware after
obtaining the approval of his employer. For the previous year ending March 31,2017, he
has the following income-
Salary from the part-time employment:Rs.3,64,000; income earned in India from the
business of trading in computer hardware:Rs.1,86,000; and foreign income from the
 same business:$40,000. Find out the Residential status of X for the assessment year
2017-18.

10. The following particulars are available about Mr. Seshan for the previous year ended 31 st
March 2012.
1. Profits of the business A carried on in India Rs.80000
2. Loss of business B carried on in India Rs.(30000)
3. Profits of business C carried on in U.K and controlled from India, the profit have been
received in U.K. Rs.52000
4. Loss of business D carried on in U.K the business being controlled from Mumbai
Rs.(46000)
5. Income from property in U.K 25% of which is receivable in India Rs.192000
6. Royalty received in U.K for use of chemical formula in
A) India Rs.60000 B) U.K Rs.30000
7. Gain on sale of land in India Rs.50000
Compute his total income for assessment year 2011-12 if he is
a) Ordinarily resident b) Not ordinarily resident c) Non-resident
[a) 4,64,000; b) 2,90,000; c) 2,38,000]

11. Ms. Ganga is a citizen of India and resides in America for past 10 years. During the
previous year 2011-12, particulars of her Income are as follows.
Particulars Amount
(Rs.)
1. Rent from a property in Delhi received in USA 95000
2. Income from business in USA controlled from Delhi 155000
3. Income from business in Bangalore controlled from USA (190000)
4. Gift received from his parents 50000
5. Pension from former employer in India received in USA 39000
6. Income from Agriculture in Bhutan and remitted to India 65000
7. Interest on development bonds issued in Canada, 40% of interest 120000
received in Mumbai
8. Dividend received from Indian companies. 47500
Calculate the taxable Income of Ms. Ganga assuming
a) Ordinarily resident b) Not ordinarily resident c) Non-resident
[a) 52,500; b) 3,84,500; c) 2,29,500]

12.
(a) Steve Waugh, the Australian cricketer comes to India for 100 days every year. Find
out his residential status for the A.Y. 2012-13. [RNOR]
(b) Mr. C, a Japanese citizen left India after a stay of 10 years on 1.06.2009. During the
financial year 2010-11, he comes to India for 46 days. Later, he returns to India for 1
year on 10.10.2011. Determine his residential status for the A.Y. 2012-13. [ROR]
(c) Mr. D, an Indian citizen, leaves India on 22.9.2011 for the first time, to work as an
officer of a company in France. Determine his residential status for the A.Y. 2012-
13. [NRI]
13. Determine the taxability of the following incomes in the hands of a resident and
ordinarily resident, resident but not ordinarily resident, and non-resident for the A.Y.
2012-13.
Particulars Amount
Interest on UK Development Bonds, 50% of interest received in India 10,000
Income from a business in Chennai (50% is received in India) 20,000
Profits on sale of shares of an Indian company received in London 20,000
Dividend from British company received in London 5,000
Profits on sale of plant at Germany 50% of profits are received in India 40,000
Income earned from business in Germany which is controlled from Delhi 70,000
(Rs.40,000 is received in India)
Profits from a business in Delhi but managed entirely from London 15,000
Rent from property in London deposited in a Indian Bank at London, brought to India 50,000
Interest for debentures in an Indian company received in London. 12,000
Fees for technical services rendered in India but received in London 8,000
Profits from a business in Bombay managed from London 26,000
Pension for services rendered in India but received in Burma 4,000
Income from property situated in Pakistan received there 16,000
Past foreign untaxed income brought to India during the previous year 5,000
Income from agricultural land in Nepal received there and then brought to India 18,000
Income from profession in Kenya set up in India, received there but spent in India 5,000
Gift received on the occasion of his wedding 20,000
Interest on savings bank deposit in State Bank of India 10,000
Income from a business in Russia, controlled from Russia 20,000
Dividend from Reliance Petroleum Limited, an Indian Company 5,000
Agricultural income from a land in Rajasthan 15,000
[3,74,000; 2,35,000; 2,00,000]

14. Y a foreign citizen (not being a person of india origin) comes to india for first time in the
last thirty years on March 20, 2012. On September 1, 2012 he leaves india for Nepal on a
business trip. He comes back on February6 26,2013. Determine his residential status
under the income tax act 1961 for the AY 2013-2014

15. Determine the taxability of Income of US based company Heli Ltd in India on entering
following transaction during a certain financial year.
1. Rs.5 lakhs received from an Indian Domestic Company for providing Technical
Know-How in India.
2. Rs.6 lakhs from an Indian Firm for conducting feasibility study for the new project in
Finland.
3. Rs.4 lakhs from a Non-resident for the used of patent for a business in India.
 4. Rs.8 lakhs from a Non resident Indian for use of Know how for a business to be
established in Singapore.
5. Rs.10 lakhs for supply of manuals and designs for the business to be established in
Singapore

16. Mr. Ramesh, an Indian citizen, gives you the following information for the year ended
31.03.2017.
Business income in Mumbai 2,50,000
Rental income from property let out in London (Converted in Indian rupees) 5,40,000
Fixed deposit interest in India from LMN Bank 60,000
Fixed deposit interest from Bank of England (Converted in Indian rupees) 40,000
Business consultancy income from Essex Ltd. in Hampshire (England), being 75,000
a company incorporated in Delhi having branch office in England. The
business is managed from Delhi. (Converted in Indian rupees)
Agricultural income from land located in Malaysia (Converted in Indian 90,000
rupees)
Income from nursery at Alwar, Rajasthan 1,40,000
Mr. Ramesh returned to India on 15.06.2016 after remaining in England for 10 years. During
the last 4 years he was in India for 100 days only. Determine the residential status of Mr.
Ramesh for the assessment year 2017-18 and compute his total income chargeable to tax in
India by giving reason for treatment of each item.
Note: Ignore Double Taxation Avoidance Agreement (DTAA). [525]

17. P submits the following information:

i. Salary for services rendered in India Rs. 50,000.
ii. Income from property outside India Rs. 10,000.
iii. Profit of Business A carried on in India Rs. 20,000
iv. Loss of Business B carried on in India Rs. 50,000
v. Profit of business C carried on outside India but controlled from India Rs. 40,000.
vi. Loss of Business D carried on outside India and controlled outside India Rs.
20,000.
vii. Unabsorbed depreciation of business D Rs. 8,000.
viii. Loss from betting Rs. 4,000.
Determine the net income on the assumption that P is:
a) Ordinary resident in India.
b) Not ordinary resident in India. c) Non-resident. [2309]

18. Mr. Sinha, Indian citizen, working as a crew member of a foreign going ship leaving
India, submits the following information about his voyage during the year 2016-17:
i. Date entered into the continuous discharge certificate in respect of joining the ship
is 31.7.2016.
ii. Date entered into the continuous discharge certificate in respect of signing off the
ship is 31.1.2017.
Is he resident for the assessment year 2017-18? [2322]

19. During the financial year 2016-17 Anil Kumar had the following income:
Particulars Rs.
 Salary income received in India for services rendered in Hong Kong 3,90,000
Income from profession in India, but received in Germany. 3,60,000
Property income in Uganda (out of which Rs. 2,40,000 was remitted to 5,00,000
India).
Profits earned from business in Bangalore. 1,50,000
Agricultural income in Kenya. 1,60,000
Profits from a business carried on at Nepal but controlled from India. 2,20,000
Compute the income of Anil Kumar for the assessment year 2017-18 if he is
i. Resident and ordinarily resident,
ii. Not ordinarily resident, and iii. Non-resident in India. [2294]

20. The following are the particulars of income of Mr Pankaj for the previous year 2017-18.
Particulars Amount (Rs.)
Rent from property in Delhi received in USA 80,000
Income from business in USA controlled from USA 1,20,000
Income from business in Bangalore controlled from USA 1,80,000
Rent from a property in USA received there but subsequently remitted 60,000
to India
Interest from deposit with an Indian Company received in USA 20,000
Gift received from his parents 45,000
Profit for the year 2016-17 of a business in USA remitted to India 75,000
during the previous year 2017-18.(Not taxed earlier)
Compute his income for the assessment year 2018-19 if he is:
i. Resident and ordinary resident in India,
ii. Not Ordinarily resident in India iii. Non-resident in India [2390]

21. Mr. X grows and manufactures tea in India. His income details are as under –
Income from business of growing & manufacturing tea (in total) Rs.1,00,000
Interest received from Mr. Y, being a grower and manufacturer of tea Rs.2,55,000
Brought forward loss (P.Y. 2016-17) from business of growing & Rs.40,000
manufacturing tea (in total)
Compute total income of Mr. X for A.Y.2018-19. [2368]

22. X, a foreign citizen (not being a person of Indian origin), came to India for the first time
on 2nd December, 2017 for a visit of 210 days. X had the following income during the
previous year ended 31-3-2018:
Salary received in India for 3 months 90,000
Income from house property in London (received there) 2,69,200
Interest on Fixed Bank Deposit with Standard Chartered Bank, New Delhi 40,000
Amount brought into India out of the past untaxed profit earned in Germany 80,000
Income from agriculture in Sri Lanka being invested there 12,324
Income from business in Nepal, being controlled from India 30,240
Gift in foreign currency from a relative received in India 80,000
Income from house property in USA received in USA (₹ 76,000 is used in 86,000
Canada for meeting the educational expenses of X’s daughter and ₹ 10,000 is
later on remitted to India)
 You are required to compute his total income for the A.Y.2018-19. [2368]

23. Teji, a citizen of India, is an export manager of Arjun Overseas Ltd., an Indian company
since 1-5-2013. He has been regularly visiting USA for export promotion. He spent the
following days in USA during the last five years:
Previous year ended Number of days spent in USA
31-3-2014 319 days
31-3-2015 150 days
31-3-2016 270 days
31-3-2017 310 days
31-3-2018 295 days
Determine his residential status for A.Y. 2018-19 assuming that prior to 1-5-2013, he had
never travelled abroad. [2368]

24. The following is the income of Shri Sudhir Kumar for the previous year 2014 – 15:
Particulars Rs.
Profits from business in Iran received in India. 5,00,000
Income from house property in Iran received in India. 1,20,000
Income from house property in Sri Lanka deposited in a bank there. 1,80,000
Profits of business established in Sri Lanka deposited in a bank there, this 2,00,000
business is controlled in India (out of Rs.2,00,000 a sum of Rs.1,00,000 is
remitted in India).
Income from profession in India but received in England 2,40,000
Profits earned from business in Kanpur. 1,60,000
Income from agriculture in England, it is all spent on the education of children 2,70,000
in London.

25. From the above particulars ascertain the taxable income of Shri Sudhir Kumar for the
previous year 2014-15, if Shri (i) a resident and ordinarily resident, (ii) not ordinarily
resident, and (iii) a non-resident. [2020]
Mr. Girish is a manager of CNK Limited. The particulars of emoluments and benefits
received by him from the employer during the previous year 2014-15 are as follows:
Particulars Rs.
Basic Salary: up to 30th June, 2014 30,000 p.m.
From 1st July, 2014 35,000 p.m.
Dearness allowance (forming part of salary for retirement benefits) 1,20,000
Transport allowance 2,000 p.m.
Children education allowance 400 per month
for three children
Tiffin allowance (actual expenses incurred Rs. 4,000 p.m.) 5,000 p.m.
Reimbursement of medical expenses for self and family 25,000
Tax on employment paid by the employer 3,000
Contribution to recognized provident fund 15% of salary
Compute income of Mr. Girish under the head "salary" for A.Y 15-16 [423]
26. Mr. Barun furnishes you the following information for the year ended 31st March, 2018:
SI. Particulars Rs.
No
1 Pension received in India from a former employer in 1,80,000
United Kingdom (UK)
2 Income from business in Singapore (Controlled from 1,00,000
India)
3 Interest on company deposit in Singapore (credited in 80,000
bank account held there)
4 Profit from business in Kolkata controlled from UK 2,00,000
5 Income from tea cultivation in Sri Lanka 3,00,000
6 Income from property in Singapore but received in 2,50,000
Malaysia
Compute the total income of Mr. Barun, where he is (i) an ordinarily resident in India; (ii) a
resident but not ordinarily resident in India, and (iii) a non-resident. [557]

27. Sri Sen went to England from India for higher education on 1st December, 2016. So long
he was in England, he had a residence in India. In winter vacations, he came twice to
India. First time he came on 1st January, 2018 and stayed for 20 days, and second time he
came on 15th December, 2018 and stayed for 25 days. After completing the education, he
came back to India forever on 30th December, 2019.
Determine the residential status of Sri Sen for the A.Y. 2020-21. [17]

28. Mr. Rupankar Roy, an Indian Citizen, left India for the purpose of employment in USA
for the first time on 1st October, 2019. He came back to India on 15th March, 2020 for
visit and returned back to USA on the next day. During the previous year 2019–20, he
earned the following Income:
i. Salary earned in USA Rs. 5,00,000 (computed) and credited in USA.
ii. Interest received in India out of Fixed Deposit in Bank Rs. 1,20,000.
Determine his residential status and Tax Incidence in India for the A.Y. 2020-21. [20]

29. Mr. David, a citizen of Spain came to India for the first time in previous year 2015-16 and
stayed for 100 days in that year. During the previous year’s 2016-17, 2017-18, 2018-19
and 2019-20 he stayed in India for 120 days, 110 days, 80 days and 90 days respectively.
What is the residential status of Mr. David for the assessment year 2020-21? [23]

30. During the financial year 2019-20, Sri Avirup Acharya had the following incomes.
Compute the income liable to be taxed in India of Sri Acharya if he is (i) Not Ordinarily
resident and (ii) Non-resident in India. [23]
i. Income from profession in India but received in USA Rs. 1,00,000
ii. Agricultural income accrued and received in Australia Rs. 20,000
iii. Income from business in Indonesia not brought into India Rs. 3,00,000. The
business is controlled from India.
iv. Property income accrued and received in London (out of which Rs. 40,000 was
remitted to India) Rs. 1,30,000
v. Interest from deposits with an African company but received in India Rs. 75,000
31. Mr. Jeff, a citizen of USA came to India for 80 days, 90 days, 110 days and 130 days in
the financial years 2009-10, 2010-11, 2011-12 and 2012-13 respectively. Determine his
residential status for the Assessment Year 2013-14. 3. [250]

32. Compute the total income of Mr. Taylor, UK citizen and a non- resident for the
Assessment Year 2013-14 from the following details furnished by him. [250]
Particulars Rs.
(i) Income from business carried out in Mumbai (60% received in USA) 5,00,000
(ii)Capital gain from sale of shares of Zenith Private Limited, an Indian 3,50,000
company. Sale proceeds were received in UK.
(iii) Rent from a house property in New Jersey collected there, but later 12,00,000
remitted to India through normal banking channel
(iv) Dividend received from MNO Limited, an Indian Company 2,50,000
(v) Royalty received in UK from PQR Limited, an Indian company for use of 6,00,000
trade mark for its business operation in India
(vi) Interest on loan received in UK from S & T Limited, an Indian company. 3,00,000
The loan was used by S & T Limited for its business carried on in Dubai

33. Mr. A furnishes the following particulars of his income during the previous year 2011-12:
i. Income from agriculture in Bangladesh, received thereof Rs. 2,00,000 and
subsequently remitted to India.
ii. Gift of Rs. 52,000 received in foreign currency from a relative in India.
iii. Arrears of salary Rs. 70,000 received in India from a former employer in England.
iv. Income from property received abroad but later on remitted to India Rs. 3,20,000
(Rs. 1 lakh used in Bahrain for educational expenses and Rs. 2 lakhs remitted in
India later).
v. Profit from business outside India managed from India Rs. 90,000 and received
outside India.
Find out the gross total income of Mr. A for the assessment year 2012-13 if A is (i) Resident
and ordinarily resident (ii) Resident but not ordinarily resident and (iii) Non-resident. [290]

34. Following details are furnished by Mr. Appaji for the year ended 31.3.2012 : [304]
Particulars Rs.
Profit on sale of shares in Indian company, sold in India but proceeds
1 30,000
received in France
2 Dividend from a Korean company received in France 50,000
Rent from property in Sri Lanka deposited in Sri Lanka but later remitted to
3 1,00,000
India through approved banking channel-Gross
4 Dividend from ABC (P) Ltd. 20,000
5 Income from nursery in Gujarat 40,000
Compute the total income of Mr. Appaji if he is
i. Resident and ordinarily resident;
ii. Resident but not ordinarily resident; iii. Non-resident.

35. What are the circumstances in which previous year and assessment year will be the
same?
Previous year and the assessment year will be same in the following cases:
 1) Shipping business of non-resident (sec.172)
2) Persons leaving India (sec.174)
3) AOP or BOI or Artificial juridical person formed for a particular event or purpose
(sec.l74A)
4) Persons likely to transfer property to avoid tax (sec.175)
5) Discontinued Business (sec.176)

36. Dev, an Indian citizen left India on 15th September, 2011 to take up an employment in a
company in Sydney. He never left India before that date. He came to India on 5th May,
2012 and stayed for 150 days in India. What is the residential status of Dev for
assessment Years 2012-13 and 2013-14? [335]

37. Stephen, a British Citizen and a non-resident has derived the following income, during
the previous year 2012-13. State, with reasons, whether the incomes are liable to tax.
Computation of income is not required. [335]
i. Capital gain of Rs. 5lakhs on sale of shares of ABC Private Limited, an Indian
company to another non-resident outside India and sale proceed was received
outside India.
ii. Salary of Rs. 8lakhs received from his employer-company incorporated in London
for services rendered in India for 120 days.
iii. Dividend of Rs. 1lakh received from XYZ Limited, a company registered in India.
iv. Interest of Rs. 6lakhs received from Mr. Manoharan on a loan. The amount of loan
has been utilised by Mr. Manoharan for a business carried on by him in London.