You are on page 1of 6

Scope of Total Income

Presentation

Tripathi Online Educare
INCOME R.&.O.R. R.B.N.O.R. N.R.I.

A- Indian Income :-
1. Income received in India Taxable Taxable Taxable

2. Income deemed to be received India Taxable Taxable Taxable
3. Income accrued in India Taxable Taxable Taxable
`
4. Income deemed to be accrued in India Taxable Taxable Taxable
B- Foreign Income :-
From a business which is controlled & managed
1. With in India Taxable Taxable Not
Taxable
2. Outside India Taxable Not Not
Taxable Taxable
Q.1) Mr. Vilas, a foreign national, furnishes the following particulars of his income for the previous
year relevant to Assessment Year 2017-18.
1. Profit on sale of plant at London Rs. 46,000/- (half is received in India).
2. Profit on sale at Delhi Rs. 52,000/- (half is received in London).
3. Interest on U.K. Development Bonds Rs. 40,000/- (entire amount received in London).
4. Interest on Bank Accounts in India Rs. 5,000/-.
5. Dividend from British Company received in India Rs.2,000/-.
6. Income from property in London Rs.3,000/-.
7. Interest received in London from a company registered in India but mainly operating in U.K.
Rs. 18,000/-.
8. Profit from a business in Delhi managed from India Rs.30,000/-.
9. Income from a business in Ceylon controlled from India Rs.10,000/-
10. Rental income from a property in Nepal deposited by a tenant in a foreign branch of an
Indian Bank operating there Rs.25,000/-.
11. Salary earned and received in Hong Kong Rs.19,000/-.

Determine gross total income of Mr. Vilas for the assessment year 2017-18 if he is (i) Resident
and ordinarily resident; (ii) Resident but not ordinarily resident & (iii) Non-Resident.
Tripathi Online Educare
Solution:
Gross total income of Mr. Vilas will be different according to different residential status while citizenship of Mr.
Vilas is immaterial.

Particular R & OR RBNOR NRI
1. Profit on sale of plant at London:
a. Received in India (46,000 x ½) 23,000 23,000 23,000
b. Received outside India (46,000 x ½) 23,000 NIL NIL
2. Profit on sale of plant at Delhi. 52,000 52,000 52,000
3. Interest on U.K. Development Bonds. 40,000 NIL NIL
4. Interest on Bank Accounts in India 5,000 5,000 5,000
5. Dividend from British Company received in India. 2,000 2,000 2,000
6. Income from property in London. 3,000 NIL NIL
7. Interest received in London from a company registered in India. 18,000 18,000 18,000
8. Profit from a business in Delhi managed from India. 30,000 30,000 30,000
9. Income from a business in Ceylon controlled from India. 10,000 10,000 NIL
10. Rental income from a property in Nepal deposited by a tenant in
a foreign branch of a Indian Bank operating there. 25,000 NIL NIL
11. Salary earned and received in Hong Kong. 19,000 NIL____ NIL____
TOTAL 2,50,000 1,40,000 1,30,000
Tripathi Online Educare
Deemed income u/s 41 {SALARIES}
SALARIES

Employed and Employed abroad by Employed by foreign company
paid in India Indian employer for services outside India &
paid abroad
whether by Indian Taxable only in the
or foreign employer Paid in India Paid abroad
hand of Resident &
ordinary resident
Taxable
in R &OR NRI
NRI
RBNOR R&OR RBNOR
India

Taxable Not
in Taxable in
India India
Tripathi Online Educare
Thank You!

Tripathi Online Educare