Worksheet-Unit 1: Residential Status, Incidence of Taxation, Computation of Tax, Agricultural

Income
1. Mark Waugh,an Australian cricket player,visits India for 100 days in every financial
year .This has been his practice for the past 10 financial years.
a. Find out his residential status for AY 2021-22.
b. Would your answer change if the above facts relate to Srinath,an Indian citizen
who resides in Australia and represents the Australian Cricket team.
c. What would your answer be,if Srinath had visited for 120 days instead of 100
days every year,including PY 20-21
2. Mr Ram,an Indian citizen,left India on 24.09.2019 for the first time to work as an officer
of a company in Germany.During the PY 2020-21,he comes to India on 5.6.2020 for
165 days.His Total Income excluding Income from foreign sources is Rs
9,00,000.Determine the residential status of Ram for the AY 2020-21 and AY 2021-22.
3. Mr Peter a foreign citizen, came to India from Poland for the first time on 1st April
2014.He stayed here continuously for 3 years and went to France on 1st April 2017. He,
however, returned to India on 1st July 2017 and went to Poland on 1st Dec 2018.He
again came back to India on 25th January 2021 on a service in India. What is his
residential status for the AY 2021-2022.
4. Mr T was born in Lahore in 1946.He has been staying in England since 1972.He came
to visit India for the first time on 1.4.2019 and stayed for the entire year. He again came
back on 7.1.2021 for a visit and leaves India on 31.3.2021. During his visit, he earns a
lottery prize of Rs 25 lakhs in India. Determine his residential status for PY 2020-21.
Will your answer change if Mr T is born in 1948 ?
5. Mr S, Indian citizen, age 62 years, left India for the first time to join a foreign company
at Hollywood on 4th July 2016 and his stay in India since then is as below:

Year Date of Arrival in India Date of departure from India

2019-20 15 June2019 14 Sep 2019
2018-19 15 Dec 2018 12 Mar 2019
2017-18 12th Dec 2017 10 Mar 2018
2016-17 4 July 2016
He left this job on 31/12/2020 and joined an Indian Company at Mumbai on 1/1/2021 at a
Salary of Rs 2,00,000 p.a.Compute his residential status for PY 2020-21.
6.

7.

8. .Following are the incomes of Mr.John for the previous year 2020-21:
a) Income from agriculture in U.K invested in Nepal Rs 2,000
b) Interest of Fixed deposit in S.B.I Rs 800.
c) Dividend received in U.K from an American Company,out of which Rs 2,000 was
remitted to India rs 10,000.
d) Salary drawn for 3 months for working in Indian embassy’s office in Australia and
salary received there rs 72,000.
e) Income from House property in USA rs 15,000.
f) Pension received in U.K for services in India with a limited co. Rs 15,000
g) Profits earned from a business in Paris which was controlled from India,half of the
profits being received in India Rs 1,00,000.
h) Past untaxed foreign income brought into India during the previous year Rs 20,000.
i) Share of Income from HUF Rs 50,000.
j) Dividend from an Indian Company Rs 10,000.
k) Gift from his brother of Rs50,000.
 l) Compute his Gross Total Income for P.Y 2020-21if he is (i)Resident and Ordinarily
Resident(ii)Not ordinarily resident (iii) Non Resident
9. Mr Dhawan, aged 40 years, a Government employee serving in the Ministry of
External Affairs, left India for the first time on 31.3.2020 due to his transfer to High
Commission of Canada. He did not visit any time during the PY 2020-21. He has
received the following income for the financial year 2020-21:

Salary (Computed) Rs 5,00,000

Foreign Allowance Rs 4,00,000
Interest on Fixed Deposit from bank in India Rs 1,00,000
Income from agriculture in Pakistan Rs 2,00,000
Income from House property in Pakistan Rs 2,50,000
Compute his Gross Total Income for AY 2021-22.

9. During the Previous year 2020-21,Mr Raman, an Indian citizen, comes to India for a
visit and stays in India during the following period:

Date of Arrival In India Date of departure from India

th
15 April 2020 23rd May 2020
th
20 June2020 17th July 2020
10th August 2020 22nd Sept 2020
th
25 October 2020 4th Nov 2020
1st Feb 2021 Did not leave India till the end of the year.
He provides you with the following information of his income during the year:
Interest paid by an Indian Company received in Germany(net of TDS of Rs 5000)Rs 45000
Pension from former employer in India, received in Australia Rs 2,00,000
Profits from business in Zurich, which is controlled from India, only 50% of the profits are
received in India Rs 40,00,000.
Income from agriculture in Bhutan received there and then remitted to India Rs 6,50,000.
Past untaxed foreign income brought to India Rs 20,00,000.
Income form property in London received there Rs 18,00,000.
Winnings from a TV game show in India Rs 35,00,000.
He also informs you that he did not visit India during 2019-20 and was in India for 276 days
during 2018-19.During 2017-18 he stayed in India for 90 days.During 2013-14 and 2014-15
he was in India for 359 and 348 days respectively.Before 2013-14 he had been visiting India
regularly for 100 days every year.
From the above information determine his residential status, compute his total Income,tax
payable and marginal relief if any for the AY 2021-22 on the basis of the above information.
10. Mr X, born in Delhi in 1990, completes his education at Bangalore and leaves India on
28th Sep 2019 for the first time for employment purposes at Dubai. During the year
2019-20, he earns below mentioned incomes:

Agricultural Income from a land in Bhutan Rs 5,00,000.

Receives a gift on 1st Sep 2018 from his friend in Delhi Rs 5,00,000.
Rent from letting out a Machinery in Dubai (20% of rent is received in India)Rs 50,000
Income from HP in USA remitted to India Rs 2,20,000.
Interest on Japan Govt Securities , received in India Rs 40,000.
Share of Profit from a partnership firm in India Rs 6,00,000
He comes back to India on 4th Oct 2020 for visit and returns back to Dubai on 5th April
2021.He earns the following during PY 20-21.
Gift received from his relatives during his wedding Rs 50,000
Agricultural Income in India Rs 10,00,000
Dividend received in India from a foreign company Rs 70,000.
Interest from Investment in a Singapore based Company rs 1,00,000.25% of it is
received in India
Income from a Business in Bangkok controlled from Bangalore Rs 30,00,000.Half of
this amount is received in UK.
Income from Business in Goa,controlled from Dubai Rs 10,00,000.
Compute his total Income for PY 2019-20 and PY 2020-21 .Also compute his tax
liability for AY 2021-22 assuming that (a)opts to pay tax u/s 115BAC (b) he does not opt
to pay tax u/s 115BAC.
11. The Total Income of R for the PY 2020-21is Rs 50,90,000.Compute the tax payable by
Mr R for AY 2021-22 assuming that (a)opts to pay tax u/s 115BAC (b) he does not opt
to pay tax u/s 115BAC.

12. Mr X, a resident Individual, aged 65 years has Income from House Property of Rs
5,40,000 and also has a business of manufacturing chips. He cultivates potatoes himself
and the cost of cultivation is Rs 2 lakhs .He uses the same potatoes to manufacture chips
and FMV of the potatoes on date of transfer is Rs 3,30,000..He sells those chips for Rs
6,60,000 during PY 2020-21.Compute his total Income and Tax liability for AY 2021-
22 assuming that he does opts to pay tax under old regime.
13. Mr Z,ROR aged 65 years, is into business of growing and manufacturing tea and his
Net Income from his activity is Rs 10,00,000.He also has Income from other sources
Rs 4,20,000.Compute his Total Income and advice him whether he should pay tax under
old regime or new regime.
14. From the following transactions, compute the Total Income in the hands of an
Individual for AY 21-22 if he is (i)ROR (ii)RNOR and (iii)NR.
a. Interest on UK development Bonds,50% of interest received in India Rs 10,000
b. Income from a business in Chennai(50% is received in India) Rs 20,000
c. Short term capital gains on sale of shares of an Indian Company received in
London Rs 20,000
d. Dividend from British Company received in London Rs 5,000
e. Long Term Capital Gains on sale of plant at Germany,50% of profits are
received in India Rs 40,000
f. Income earned from business in Germany which is controlled from Delhi (Rs
40,000 received in India)Rs 70,000
g. Profit from a business in Delhi but managed entirely from London Rs 15,000.
h. Income from House Property in London deposited in a Bank at London, brought
to India (computed) Rs 50,000.
i. Interest on Debentures in an Indian Co. received in London Rs 12,000.
j. Fees for technical services rendered in India but received in London Rs 8,000
k. Profits from a business in Mumbai managed from London Rs 26,000
l. Pension from services rendered in India but received in Burma Rs 4,000
m. Past untaxed foreign income brought to India during the previous year Rs 5,000
n. Income from agricultural land in Nepal received there and then brough to India
Rs 18,000
o. Income from profession in Kenya which was set up in India, received there but
spent in India Rs 5,000
p. Gift received on occasion of wedding Rs 20,000
q. Interest in saving bank deposit in SBI Rs 12,000
r. Dividend from Reliance Petroleum Ltd,an Indian company
s. Agricultural Income from a land in Rajasthan Rs 8,000.
 PRACTICE QUESTIONS
1. Mr SUmani, a Japanese citizen, left India after a stay of 6 years on 09/12/2018.During
the financial year 2019-20,he stays in India for 78 days.Later he returns to India for 1
year on 15th Nov 2020.Determine his residential status for PY 2020-21.

Ans ROR

2. X,a German National,came to India for the first time on 1.7.2014.During the period from
1.7.2014to 31.3.2021,he stayed in India as follows- from 1.7.2014 to 31.10.2014;from
1.5.2015 to 31.10.2015;from 111.2016 to 31.12.2016 and from 1.7.2019 to
31.8.2020.During the previous year ended on 31.3.2021,X’s income consisted of :
a. Business in India Rs 40,000
b. Interest from an Indian Company :Rs 2,000
c. Dividends from non Indian companies received in Germany but remitted to
India :Rs 5,000
d. Business in Germany (controlled from India) Rs 25,000
e. Income from House Property in Germany Rs 8,000
Compute his GTI and ascertain his residential status for AY 20-21.
Ans:Staus:NR ;GTI 42000

3. R, a foreign national (not being a person of Indian origin),comes to India,for the first
time in the last 15 years on 28.3.2020.On 5.9.2020,he leaves India for Nepal on a
business trip.He comes back on 28.2.2021.Determine the residential status of for AY
2021-22.
Ans:RNOR

4. Rajesh Kumar, a foreign citizen (not being a person of Indian origin) came to India for
the first time on 3rd December, 2019 for a visit of 220 days. Rajesh Kumar had the
following income during the previous year ended 31st March, 2021:

(1) Salary (computed) received in India for three months 1,00,000

(2) Income from house property in London (received there) 2,75,200
(3) Amount brought into India out of the past-untaxed profits earned in Germany 80,000
(4) Income from agriculture in Sri Lanka, received and invested there 12,300
(5) Income from business in Nepal, being controlled from India 35,000
(6) Income from house property in USA received in USA 86,000
(`76,000 is used in Canada for meeting the educational expenses of Rajesh’s daughter and 10,000
is later on remitted in India)

You are required to compute his total income for the assessment year 2020-21.

Ans: Status NR ;GTI Rs 1,00,000.

 5. Mr. Vineet Tyagi earns the following incomes during the financial year 2020-21.

(1) Profits from a business in Japan, controlled from India, 40,000

(half of the profits received in India)

(2) Income from property in Bombay, received in US 70,000

(3) Income from a property in USA, received there but subsequently remitted to India 2,00,000

(4) Income from property in USA, received there (`50,000 remitted in India) 80,000

(5) Salary received in India for services rendered in USA 50,000

(6) Income from profession in Paris, which was set up in India, received in Paris 80,000

(7) Interest from deposit with an Indian company, received in Japan 9,000

(8) Income from profession in Bombay received in Paris 30,000

(9) Profits of business in Iran, deposited in a bank there, business controlled from India 4,00,000
(out of `4,00,000, ` 1,00,000 is remitted in India)

(10) Interest on German development bonds, half of which is received in India 10,000

(11) Income from property in Canada, one-fifth is received in India 50,000

(Presume all the above incomes are computed income i.e. all the exemptions and deductions have
already been allowed)

Determine the gross total income of Mr. Vineet Tyagi if he is (i) resident and ordinarily resident, (ii)
resident but not ordinarily resident, (iii) non-resident in India during the PY2019-20.

Ans: GTI 10,19,000;6,94,000,1,94,000.