Direct Taxation- M1- CiTech- Chikkegowda K G

PROBLEMS ON RESIDENTIAL STATUS

1.Mr. Z leaves India for the first time on 10th June 2006 and comes back on 1-06-2009. He
again leaves India on 15-07-2018 to come back on 1-3-2019.. At present he is in India.
Determine his residential status for the previous year 2018-19.
Direct Taxation- M1- CiTech- Chikkegowda K G

(1) Mr, Raj Mohan, scientist from USA was appointed as senior scientist in India for the first
time on 11-03-2003. On 31st January 2008 he went to Pakistan on deputation but left his
family (wife and children) in India. On 1st may 2017 he came to India and took his family
on 31st October 2017. He returned to India and joined original post on 5th Feb 2019.
Determine his residential status for the Assessment Year 20011-12.
Direct Taxation- M1- CiTech- Chikkegowda K G

(2) Mr. X left India for the first time on May 20, 2018. During the financial year 2018-19,
he came to India once on May 27 for a period of 53 days. Determine his residential
status for the A.Y 2019-20.
Direct Taxation- M1- CiTech- Chikkegowda K G

(3) Mr. X a German tourist comes to India for the first time on May 17, 2018. He leaves
India on September 15, 2018. Determine his residential status for the A.Y 2019-20
Direct Taxation- M1- CiTech- Chikkegowda K G

(4) Mr. X an Italian citizen comes to India for the first time (After 20 years) on May 28, 2018
and stays up to December 5, 2018. Determine his residential status for the A.Y 2019-20
Direct Taxation- M1- CiTech- Chikkegowda K G

(5) Mr. X comes to India for the first time, on April 16, 2009. During his stay up to October
5 2017, he stays at Delhi up to April 10, 2017 and thereafter remains in Chennai till his
departure from India. Determine his residential status for the A.Y 2018-19
Direct Taxation- M1- CiTech- Chikkegowda K G

(6) Mr. X a foreign citizen (not being a person of Indian origin), comes to India, for the first
time in the last 30 years on March 20, 2017. On September 1, 2017, he leaves India for
Nepal on a business trip. He comes back on February 26, 2019. Determine his
residential status for the A.Y 2018-19
Direct Taxation- M1- CiTech- Chikkegowda K G

(7) Mr. X a foreign citizen comes to India for the first time on June 20, 2017. On September
6, 2017, he leaves India Burma on a business trip,. He comes back on January 1, 2018.
He maintains a dwelling place in India from the date of his arrival in India (i.e., June,
20, 2017) till January 15, 2018 when he leaves for Kuwait. Determine his residential
status for the A.Y 2018-19. Does it make any difference if X is a person of Indian Origin?
Direct Taxation- M1- CiTech- Chikkegowda K G

(8) Mr. X an Indian citizen, who is appointed as senior taxation officer by the Govt of
Nigeria, leaves India, for the first time, on September 26, 2017 for joining his duties in
Nigeria. During the previous year 2018-19, he comes to India for 176 days. Determine
his residential status for the A.Y 2018-19
Direct Taxation- M1- CiTech- Chikkegowda K G

10. Mr. X an Indian citizen, who is appointed as senior taxation officer by the Govt of Libya,
leaves India, for the first time, on November 03, 2017 for joining his duties in Libya..
During the previous year 2018-19, he comes to India for 190 days. Determine his
residential status for the A.Y 2018-19and 2019-20
Direct Taxation- M1- CiTech- Chikkegowda K G

11. Mr. X a foreign citizen comes to India for the first time on June 22, 2006. From June 22,
2006 to march 31, 2019, he is present in India for 1795 days (2006-07:183 days; 2007-
08: 365 days; 2008-09: 365 days; 2009-10: 365 days; 2016-17: 366 days; 2017-18: 59
days and 2018-19: 92 days). Determine his residential status for the A.Y 2018-19
Direct Taxation- M1- CiTech- Chikkegowda K G

PROBLEMS ON INCIDENCE OF TAX

(1) The following are the incomes of Shri Ram Prasad for the previous year 2017-18
 Profit from business in Iran received in India Rs. 5,000
 Income from house property in Iran received in India Rs. 500
 Income from house property in Pakistan deposited in a bank there Rs. 1,000
 Profit from business established in Pakistan deposited in a bank there Rs. 20,000 (out of
Rs. 20,000 a sum of Rs. 10,000 is brought to India) – this business is controlled from
India.
Accrued income in India but received in England Rs. 2,000
 Profit earned from business in Kanpur Rs.6,000.
 Income from agriculture in England- it is all spent on the education of children in London
Rs. 5,000, and
 Past untaxed foreign income brought into India during the previous year Rs. 10,000
Form the above particulars ascertain the taxable income of Shri Ram Prasad for the Assessment
Year 2018-19 if he is (i) A resident (ii) a not ordinarily resident and (iii) a non resident.
Direct Taxation- M1- CiTech- Chikkegowda K G

(2) Shankar a foreign national furnishes the following particulars for the Assessment year 2018-
19
 Profit on sale of plant at London (one-half is received in India) Rs. 1,46,000
 Profit on sale of plant at Delhi (one-half is received in London) Rs. 1,02,000
 Salary income from an Indian company received in London (one-half is paid for
rendering services in India) Rs. 60,000
 Interest on U.K Development bonds (entire amount is received in London) Rs. 40,000.
 Income from house property in London received there Rs. 30,000
 Profit from a business in Delhi managed from India Rs. 49,000
 Income from agriculture in London received there, half of which is used for meeting
hostel expenses of Shankar’s son in England and remaining amount is later on remitted
to India Rs. 25,000.
 Dividend (gross) received in London form a company registered in India but mainly
operating in U.K.
 Rental income from a property in Nepal deposited by the tenant in a foreign branch of
an Indian bank operating there.
 Gift from a relative in foreign currency (one third of which is received in India and
remaining amount is used for meeting education expenses of Shankar’s son in USA.
Form the above particulars ascertain the taxable income of Shankar for the Assessment Year
2018-19 if he is (i) A resident (ii) a not ordinarily resident and (iii) a non resident.
Direct Taxation- M1- CiTech- Chikkegowda K G

(3) Mr. X furnishes the following particulars of his income earned during the previous year
relevant to the assessment year 2018-19.
 Interest on German Development Bonds (two-fifth is received in India) Rs. 60,000
 Income from agriculture in Bangladesh, received there but later on Rs. 50,000 is remitted
on India (agriculture activity is controlled form Bangladesh) Rs. 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) Rs. 86,000
 Income earned from business in Kampala (Uganda) which is controlled from Delhi (Rs.
15,000 is received in India) Rs. 65,000.
 Dividend paid by a foreign company but received on India on April 10, 2014 Rs. 46,500
 Past untaxed profit of 1999-2000 brought to India in 2014-15 Rs. 10,43,000.
 Profits from a business in Chennai and managed from outside India Rs. 27,000.
 Profit on sale of building in India but received in Srilanka Rs. 14,80,000.
 Pension from a formed employer in India, received in Rangoon Rs. 36,000
 Gift in foreign currency from a friend received in India on January 20, 2015 Rs. 80,000
Form the above particulars ascertain the taxable income of Mr. X for the Assessment Year 2018-
19 if he is (i) A resident (ii) a not ordinarily resident and (iii) a non resident.