1. X sets up a new business on March 3, 2020.

What is the previous year for the

assessment year 2020-21?
2. X sets up a new business on April 10, 2019. What is the previous year for the
assessment year 2020-21?
3. X joins an Indian company on January 23, 2020. Prior to January 23, 2020, he is not
in employment. He has no other source of income. What are the previous years for the
assessment years 2020-21 and 2021-22?
4. X joins an Indian company on April 16, 2021. Prior to April 16, 2021, he does not
have any source of income. What are the previous years for the assessment years
2020-21 to 2022-23?
5. The income of X comprises of only property income up till March 10, 2019. On
March 10, 2019, he starts a new business of computer hardware. From the data given
below, find out the taxable income of X for the assessment years 2018-19 to 2020-21 :
Property income : Rs. 42,000 every year. Business income : Rs. 69,000 from March
10, 2019 to March 31, 2020 (out of which Rs.10,000 is for the period ending March
31, 2019).
6. X Ltd., an Indian company, is engaged in the business of trading goods since 1960
[income of trading business for previous years 2018-19 and 2019-20 is Rs. 1,39,000
and Rs. 7,86,000, respectively]. On April 6, 2020, it starts a processing unit at Pune
[income of the period ending on March 31, 2021 : Rs.14,600]. Compute the income of
X Ltd. chargeable to tax for the assessment years 2019-20 and 2020-21.
7. Determine the status of the following :
1. Delhi University.
2. DCM Ltd.
3. Delhi Municipal Corporation.
4. Taxmann Publications (P.) Ltd.
5. Laxmi Commercial Bank Ltd.
6. ABC Group Housing Co-operative Society.
7. XY & Co., firm of X and Y
8. A joint family of X, Mrs. X and their sons A and B.
9. X and Y who are legal heirs of Z (Z died in 1996 and X and Y carry on his business
without entering into partnership)
8. Determine legal status of the following :
(a) X, a lecturer in the Delhi University ;
(b) X, a sole proprietor of a business ;
(c) X, a director in the ABC (P.) Ltd. ;
(d) Calcutta Municipal Corporation ; and
(e) the Life Insurance Corporation of India.
9. . Income of X (age : 35 years) is Rs. 2,50,000 for the assessment year 2020-21. He
does not file his return of income because his income is not more than the amount of
exempted slab. Income-tax Department does not take any action against him
since the income of this person X is 2.50.000 and income upto there for residents
under 60yrs is NIL, the decision of the ITD is justified.
10. Income of Y (age : 38 years) is Rs. 2,55,000 for the assessment year 2020-21. He does
not file his return of income. Since he is supposed to file his return of income (income
being more than exempted slab of Rs. 2,50,000), he is… a tax defaulter?
11. Income of Z (age : 51 years) is Rs. 75,000 for the assessment year 2020-21. He files
his return of income (even if his taxable income is less than Rs. 2,50,000).
Assessment order is passed by the Assessing Officer without any adjustment. Z is …
12. Income of A for the assessment year 2020-21 is (-) Rs. 60,000. He files his return of
income. He is…(filing for nil income return?)
13. Income of B (age : 28 years) is less than Rs. 2,50,000 for the assessment year 2020-
21. He files his return of income to claim refund of tax deducted by X Ltd. on interest
paid to him. B is…
14. Income of C (age : 30 years) is less than Rs. 2,50,000 for the assessment year 2020-
21. He does not file his return of income. During 2019-20, he has paid salary of Rs.
8,90,000 to an employee. Though he is supposed to deduct tax at source, yet due to
ignorance of law, no tax is deducted by him. In this case, C…
15. X Ltd. has 50 employees. Employees have formed a tea club in the office. Each one
of them contributes Rs. 80 per month to the club. Club provides tea in tea breaks.
During the financial year 2019-20, the excess of receipt over expenditure of the club
is Rs. 470, whether it will be counted as income or not?
16. XY Trust is created for public charitable purposes. On June 10, 2019, it receives a
sum of Rs.1 lakh as voluntary contribution (not being with any specific direction)
from a business house. Rs.1 lakh would be included in the income or not?- U/section
 12 of the act, it is generally taxable when no direction is specified and it is taxable
under the head “income from other sources”
17. X is employed by A Ltd. Apart from salary, he has been provided a rent-free house by
the employer. The value of perquisite in respect of rent-free house is taxable as
“income” in the hands of X or not?
18. X is employed by A Ltd. He gets Rs. 3,000 per month as conveyance allowance apart
from salary. Rs. 3,000 per month is treated as “income or not?
19. X is a director in a company. The company provides a domestic servant for private
purposes. The perquisite value of domestic servant is treated as “income” of X or not?
20. X holds 20 per cent equity share capital in A Ltd. A Ltd. repays a loan of Rs.15,000
on behalf of X. Rs.15,000 is treated as “income” of X or not?
21. B is a director in C Ltd. C Ltd. pays a sum of Rs.47,000 to ITC Hotels on behalf of
Mrs. B (the payment is made only because B is director in C Ltd.). Rs.47,000 is
treated as “income” of B or not?
22. X is one of trustees of a charitable trust. The trust provides him a residential
accommodation. The perquisite value of the accommodation is treated as “income” of
X. or not?
23. X is an agent of A Ltd. He gets a compensation of Rs. 2,00,000 at the time of
termination of his agency from A Ltd. Rs. 2,00,000 is treated as “income” of X or
not?
24. A profit of Rs. 2,50,000 is generated by A Ltd. on sale of licence granted under the
Imports (Control) Order, 1955. Rs. 2,50,000 is treated as “income” of A Ltd.?
25. A car owned by a partnership firm is used by one of the partners for private purposes.
The perquisite value of the case is “income” in the hands of the partner or not?
26. X Ltd. gets a sum of Rs. 5,00,000 from A Ltd. for not carrying out the activity of
selling goods in Agra for a period of two years from June 1, 2019. Rs. 5,00,000 is
treated as “income” of X Ltd. Or not?
AGRICULTURAL INCOME

1. 1 For the previous year ending March 31, 2020, non-agricultural income of X
(age : 22 years) is Rs. 2,50,000, whereas agricultural income is Rs. 6,80,000.
Is he liable to pay income-tax?
2. From the following information, find out whether X (age : 63 years, resident)
is liable to pay income-tax for the assessment year 2020-21 :
Non-agricultural income for the year ending March 31, 2019- 4,76,000
Agricultural income for the previous year ending March 31, 2020- 48,00,000
Non-agricultural income for the year ending March 31, 2020 - 3,00,000
3. X is of 63 years of age. His agricultural income is 2,00,000 and non-
agricultural 7,00,000.
4. What is agricultural income and how is it treated for income-tax purposes?
5. Explain the term “agricultural income” and state the incomes included under
this head.
6. Discuss whether the following items of income constitute “agricultural
income” for the purpose of the Income-tax Act :
a. Income derived from rubber plantation in Singapore.
b. Rent received from a tenant to whom land in India has been let out and who
uses it for cultivating wheat.
c. Dividend received by a shareholder from an Indian company the whole of
whose income is agricultural income.
d. Income derived from sale of timber of spontaneous growth on Indian soil.
7. Explain the scheme of partial integration of agricultural income with the total
income for computing tax liability.
8. X is the manager of an agricultural farm in Bihar, cultivating paddy and jute.
The income of the farm is agricultural income within the meaning of the
Income-tax Act, 1961. X claims that as his services are connected entirely
 with agricultural production, his salary for acting as the manager is also
agricultural income. State giving reasons whether his claim is tenable.
9. An individual, owning some land in West Bengal on which there is a forest of
spontaneous growth, clears the land and sells the timber at a profit of Rs.
25,000. He then allows Y to cultivate paddy and other crops thereon for which
he charged a rent of Rs. 5,000. Y hires tractor from Z, the charge being Rs.
2,000 and used the tractor for agricultural operations on the land. By growing
and selling the agricultural product Y makes a net profit of Rs. 15,000.
Discuss whether the sums of Rs. 25,000, Rs. 5,000, Rs. 2,000 and Rs. 15,000,
constitute agricultural income in the hands of X, Y and Z, respectively

RESIDENTIAL STATUS

1. X left India for the first time on May 20, 2017. During the financial year 2019-20, he
came to India once on May 27 for a period of 53 days. Determine his residential status
for the assessment year 2020-21.
2. X, a German tourist, comes to India for the first time on May 17, 2019. He leaves
India on September 15, 2019. Determine his residential status for the assessment year
2020-21. Does it make any difference if he comes to India on a business trip or if he is
an Indian citizen?
3. X comes to India, for the first time, on April 16, 2017. During his stay in India up to
October 5, 2019, he stays at Delhi up to April 10, 2019 and thereafter remains in
Chennai till his departure from India. Determine his residential status for the
assessment year 2020-21.
4. X, an Italian citizen, comes to India for the first time (after 20 years) on May 28, 2019
and stays up to December 5, 2019. Determine his residential status for the assessment
year 2020-21.
5. X was born in Chennai in 1992. Later on he migrated to Canada in June 2013 and
took the citizenship of that country with effect from December 26, 2018. His parents
were born in Bengal in 1960 and his grandparents were born in India in 1946. He
comes to India during 2019-20 for a visit of 150 days. During earlier 4 years (i.e.,
April 1, 2015 to March 31, 2019) he was in India for 400 days. Find out the
residential status of X for the assessment year 2020-21.
6. X, a foreign citizen, comes to India for the first time on June 20, 2019. On September
6, 2019, he leaves India for Burma on a business trip. He comes back on January 1,
2020. He maintains a dwelling place in India from the date of his arrival in India (i.e.,
June 20, 2019) till January 15, 2020 when he leaves for Kuwait. Determine his
residential status for the assessment year 2020-21. Does it make any difference if X is
a person of Indian origin?
7. X, a foreign national (not being a person of Indian origin), comes to India for the first
time on April 15, 2015. During the financial years 2015-16, 2016-17, 2017-18, 2018-
19 and 2019-20, he is in India for 130 days, 80 days, 13 days, 210 days and 75 days
respectively. Determine the residential status of X for the assessment year 2020-21.
8. X, a foreign citizen, comes to India for the first time on June 22, 2014. From June 22,
2014 to March 31, 2021, he is present in India for 1795 days (2014-15 : 183 days ;
2015-16 : 366 days ; 2016-17 : 365 days; 2017-18 : 365 days ; 2018-19 : 365 days ;
2019-20 : 59 days and 2020-21 : 92 days). Determine the residential status of X for
the assessment year 2020-21.
9. 5 X, a foreign citizen (not being a person of Indian origin), leaves India for the first
time in the last 20 years on November 20, 2017. During the calendar year 2018, he
comes to India on September 1 for a period of 30 days. During the calendar year
2019, he does not visit India at all but comes to India on January 16, 2020. Determine
the residential status of X for the assessment year 2020-21.
10. 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, 2017. During the calendar year 2018, he comes to
India on November 20 for a period of 46 days. During the calendar year 2019, he does
not come to India at all. He finally comes back on January 31, 2020 at 10.30 p.m.
Determine his residential status for the assessment year 2020-21.
11. X is a foreign citizen (not being a person of Indian origin). During the financial year
2019-20, he came to India for 70 days. Determine his residential status for the
assessment year 2020-21 on the assumption that during financial years 2005-06 to
2018-19, he was present in India as follows :
2018-19= 100 days 2011-12= 181 days
2017-18= 80 days 2010-11= 90 days
2016-17= 60 days 2009-10= 71 days
2015-16= 126 days 2008-09= 4 days
2014-15= 80 days 2007-08= 8 days
 2013-14= 70 days 2006-07= 55 days
2012-13= 23 days 2005-06= 298 days
12. During the previous year 2019-20, X, a foreign national (not being a person of Indian
origin), visits India for 64 days. Determine his residential status for the assessment
year 2020-21 on the basis of the following information :
a. During 2015-16, X is present in India for 365 days.
b. During 2013-14 and 2012-13, X is in India for 40 and 365 days respectively.
c. Mrs. X is non-resident in India for the assessment year 2020-21
13. X, an Indian citizen, who is appointed as senior taxation officer by the Government of
Nigeria, leaves India, for the first time, on September 26, 2019 for joining his duties
in Nigeria. During the previous year 2020-21, he comes to India for 176 days.
Determine the residential status of X for the assessment years 2020-21 and 2021-22.
14. * X, an Indian citizen, is appointed as senior taxation officer by the Government of
Libya. He leaves India, for the first time, on November 3, 2019 for joining his duties
in Libya. During the previous year 2020-21, he comes to India on December 3, 2020
for 190 days. Determine the residential status of X for the assessment years 2020-21
and 2021-22.
15. X, an Indian citizen, leaves India for the first time on September 20, 2017 for the
purpose of employment. He comes to India for a visit of 146 days on April 10, 2018.
He finally comes back on May 16, 2019. Find out the residential status of X for the
assessment year 2020-21.
16. X is a foreign citizen (not being a person of Indian origin). Since 1981, he visits India
every year in the month of April for 100 days. Find out the residential status of X for
the assessment year 2020-21.
17. X comes to India for the first time on September 1, 2019. On September 15, 2019, 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, 2019. On October 9, 2019, he starts a trading business in computer
hardware after obtaining the approval of his employer. For the previous year ending
March 31, 2020, 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 2020-21
18. X, an individual, is resident but not ordinarily resident in India for the assessment year
2020-21 (previous year 2019-20). During the previous year 2019-20, the affairs of X
(HUF), a Hindu undivided family, whose karta is X since 1960, are partly managed
from Delhi and partly from Nepal. Determine the residential status of X (HUF) for the
assessment year 2020-21.
19. The Head Office of XY, a Hindu undivided family, is situated in Hong Kong. The
family is managed by Y (since 1980) who is resident in India in 3 out of 10 years
immediately preceding the previous year 2019-20 and who is present in India for
more than 729 days during last 7 years. Determine the residential status of the family
for the assessment year 2020-21 if affairs of the family business are (a) wholly
controlled from Hong Kong, (b) partly controlled from India.
20. X Ltd. is an Indian company. It has 10 shareholders who are foreign citizens and non-
resident in India. The business of the company is fully controlled from outside India.
Find out the residential status of X Ltd. for the assessment year 2020-21.
21. X Ltd. is an Indian company. It has 10 shareholders who are foreign citizens and non-
resident in India. One of the shareholders in X Ltd. is the Government of Japan which
holds 70 per cent equity share capital. The business of the company is fully controlled
from outside India. Find out the residential status of X Ltd. for the assessment year
2020-21.
22. Y Ltd. is a company incorporated in Mauritius (turnover more than Rs. 50 crore). It
has 10 shareholders who are Indian citizens and resident in India. The company has
active business outside India and is controlled wholly from outside India by a team of
professionals. What is the residential status of Y Ltd. for the assessment year 2020-
21?
23. Z Ltd. is incorporated in Japan. It has 15 shareholders (10 are Indian citizens and
resident in India). The company has no active business in Japan. Gross annual
turnover of the company for the previous year 2019-20 is Rs. 48 crore mainly from
operations conducted from Korea, Sri Lanka and India. The company is managed by a
team of professionals from India. Find out the residential status of Z Ltd. for the
assessment year 2020-21.

INCIDENCE OF TAX

1. For the assessment year 2019-20 (previous year 2018-19), X is employed in India and
gets Rs. 6,00,000 (after standard deduction) as salary. His income from other sources
 includes : Dividend received in London on June 3, 2019 : Rs. 1,00,000 from a foreign
company ; share of profit received in London on December 15, 2019 from a business
situated in Sri Lanka but controlled from India : Rs. 2,00,000 ; remittance from
London on January 15, 2020 out of past untaxed profit of 2018-19 earned and
received there : Rs. 3,00,000 and interest earned and received in India on May 11,
2020 : Rs. 1,92,000. Find out his gross total income, if he is (a) resident and ordinarily
resident, (b) resident but not ordinarily resident, and (c) non-resident for the
assessment year 2020-21.
2. For the assessment year 2020-21, X (whose previous year is 2019-20) receives the
following income : Royalty earned in India but received on May 3, 2019 in Nepal :
Rs. 1,46,000 ; dividend from a foreign company received in Nepal on July 16, 2019 :
Rs. 2,56,000 ; share of profit of a business situated in Nepal, received in Burma on
June 14, 2019 but controlled from India : Rs. 1,42,000 ; rent of 2019-20 of a house
property situated in Nepal and received there on December 31, 2019 : Rs. 4,65,000† ;
and speculation profit earned and received outside India on April 15, 2020 : Rs.
5,60,000. Determine the gross total income of X for the assessment year 2020-21 if he
is (a) non-resident, (b) resident but not ordinarily resident, and (c) resident and
ordinarily resident.
3. 2 X is resident and ordinarily resident in India for the assessment year 2020-21. He
gives the following information in respect of his income for the previous year 2019-
20 :
1. Capital gain on sale of a house situated in Pune (sale consideration is received in
Nepal) 10,00,000
2. Salary received in Sri Lanka for rendering service in Tamilnadu (salary after
standard deduction being Rs. 1,60,000) 1,60,000
3. 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
4. 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 2020-21
4. For the assessment year 2020-21, X is non-resident in India. From the information
given below, find out his income chargeable to tax for the assessment year 2020-21 :
1. Royalty received by him outside India from the Government of India 8,17,000
 2. Technical fees received from A Ltd. (an Indian company) in Germany for advise
given by him in respect of a project situated in Iran 1,17,000
3. Income from a business situated in Sri Lanka (goods are sold in Sri Lanka, sale
consideration is received in Sri Lanka but business is controlled partly in Sri Lanka
and partly in India) 2,17,000
4. Income from a business connection in India (it is received outside India) 3,17,000
5. For the assessment year 2020-21, X is non-resident in India. From the information
given below, find out his income chargeable to tax for the assessment year 2020-21.
Find for ROR and RNOR too :
1. Royalty received by him outside India from the Government of India 8,17,000
2. Technical fees received from A Ltd. (an Indian company) in Germany for advise
given by him in respect of a project situated in Iran 1,17,000
3. Income from a business situated in Sri Lanka (goods are sold in Sri Lanka, sale
consideration is received in Sri Lanka but business is controlled partly in Sri Lanka
and partly in India) 2,17,000
4. Income from a business connection in India (it is received outside India) 3,17,000
6. X furnishes the following particulars of his income earned during the previous year
relevant to the assessment year 2020-21 :
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, 2019= 46,500
Past untaxed profit of 2015-16 brought to India in 2019-20 =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, 2020= 80,000
 Find out the gross total income of X, if he is (i) resident and ordinarily resident in
India, (ii) resident but not ordinarily resident in India, or (iii) non-resident in India for
the assessment year 2020-21
7. X, a foreign national, furnishes the following particulars of his income relevant for the
previous year 2019-20 :
Profit on sale of plant at London (one-half is received in India) 1,46,000
Profit on sale of plant at Delhi (one-half is received in London) 1,02,000
Salary (after standard deduction) from an Indian company received in London (one-
half is paid for rendering service in India) 60,000
Interest on UK Development Bonds (entire amount is received in London) 40,000
Income from property in London received there 30,000
Income from agriculture in London received there, half of which is used for meeting
hostel expenses of X’s son in England and remaining amount is later on remitted to
India 25,000
Dividend received in London on May 6, 2019 from a company registered in India but
mainly operating in UK 17,000
Profit from a business in Delhi managed from India 49,000
Rental income from a property in Nepal deposited by the tenant in a foreign branch of
an Indian bank operating there 12,000
Gift in foreign currency received on September 20, 2019 from a friend (one-third of
which is received in India and remaining amount is received outside India and utilised
for meeting education expenses of X’s son in USA) 3,70,000
Determine gross total income of X for the assessment year 2020-21, if he is : (a) non-
resident, (b) resident but not ordinarily resident, and (c) resident and ordinarily
resident.
8. X and Mrs. X are foreign citizens. They come to India on September 3, 2019 for a
visit of 170 days. In the earlier previous years, they are in India as follows :

X Y
2018-2019 365 days 240 days
2017-18 20 days 340 days
2016-17 15 days Nil
2015-16 120 days 118 days
2014-15 5 days 350 days
 2013-14 8 days 190 days
2012-13 15 days 160 days
2011-12 18 days 332 days
2010-11 140 days 92 days
2009-10 10 days 221 days

During the previous year 2019-20, X and Mrs X have the following income:

X Y
Interest on company deposit in India 48,000 7,10,000
Income deemed to be earned in India 32,000 55,000
Income from business situated in Nepal and controlled 64,000 38,000
from India (40 per cent is received in India and 60 per
cent is received outside India)
Dividend declared by A Ltd., an Indian company 30,000 48,000
Salary (after standard deduction) received in India for 92,000 86,00
service rendered outside India
Interest received from the Government of India 58,000 16,000
(received outside India)
Interest received from a foreign company outside India 70,000 5,000
(on capital which is utilised outside India)
Interest received from a foreign company outside India 38,000 92,000
(on loan which is utilised for doing business in India)
Royalty received in India from the Government of 10,000 5,000
India
Royalty received in India from a non-resident in respect 18,000 7,000
of technology used by such person outside India

The following information is also available :

Place of birth Year of birth

X Dubai 1950
Mrs. X Bombay 1951
Father of X Muscat 1921
Mother of X Kathmandu 1924
Grandmothers of X Mexico and Dubai 1892 and 1895
grandfathers X Taipei and Logos 1890 and 1890
Father if Mrs. X Dubai 1925
Mother of Mrs. X Belfast 1926
Grandmothers of Mrs. X Chicago and Muscat 1901 and 1902
Grandfathers of Mrs. X Karachi and Dubai 1901 and 1900

Find out the residential status and gross total income of X and Mrs. X for the assessment year
2020-21.

9. X (HUF) whose karta is X since 1970, owns the following three businesses —

Name of From Income Income Income Income Total

business where earned earned earned in earned income of
business is and and India but outside the A.Y-
controlled received received received India but 2020-21
in India outside outside received
India India in India
A India 10,000 7,000 20,000 9,000 46,000
B Nepal 20,000 80,000 6,000 10,000 1,16,000
C Partly 5,000 8,000 12,000 13,000 38,000
from India
and partly
from
hongkong
Total 35,000 95,000 38,000 32,000 2,00,000

X comes to India only for 60 days each year. No other income is derived by X (HUF).
Personal income of X which is chargeable to tax in India for the assessment year
2020-21 is Rs. 70,000. Find out the income of X (HUF) for the assessment year 2020-
21.
10. A person settled abroad is interested in knowing the provisions regulating residential
status of a taxpayer (other than an individual) in India. Give these provisions in brief
in the form of a table.
11. Find out the residential status in the cases given below for the assessment year 2020-
21—
1. X Ltd., an Indian company, has five members on its board of directors who are all
non-resident in India. All the shareholders are foreign citizen and non-resident in
India. The business of the company is controlled from a place outside India.
[resident]
2. Y Ltd., a foreign company, operates in India and all decisions regarding the affairs
of its business are taken in India and its effective management is situated in India.
However, a few decisions are taken in Berlin where the company is registered.
Turnover of Y Ltd. is Rs. 500 crore. [since POEM is in india, it is a resident]
3. Z and company is a partnership firm of Z and A, both of whom are foreign citizen
and non-resident in India. They remain outside India. The firm is controlled by B, a
whole-time manager in India. B generally consults Z and A on all major issues
regarding the affairs of the firm. Since it cannot be RNOR or ROR, it is resident
only.
4. C (HUF), a Hindu undivided family, whose karta C is a person of Indian origin.
During the previous year 2019-20, C is non-resident (as he is in India only for 25 days
during April 2019). The family’s business is controlled by a team of professionals in
India under the guidance of C. Every year C comes to India generally for 25-100
days.[RNOR]
12. By virtue of section 9(1) income from a “business connection” in India is deemed to
accrue or arise in India. Give some illustrative instances of a non-resident having a
business connection in India. What are those operations which are not taken as
“business connection” in India?
13. Discuss whether the following income are taxable or not in India —
1. A non-resident purchases goods from India and sells these goods abroad.
2. A non-resident is engaged in the business of publication of a magazine from
Hawaii. Some of the news published in the magazine are collected from India.
3. X Ltd., a non-resident foreign company, is engaged in the business of shooting a
cinematograph film in India. The film after its completion is sold to another non-
 resident outside India. None of shareholders of X Ltd. is an Indian citizen or resident
in India.
4. A non-resident owns a commercial building in Bombay which is transferred to
another non-resident outside India. The consideration is payable in a foreign currency
outside India. 5. A non-resident owns a residential house in Delhi which is given on
rent to a foreign embassy. Rent is, however, payable outside India in a foreign
currency.
6. Interest on loan is paid by the Government of India to a non-resident outside India.
7. Y Ltd., a non-resident, gets royalty from Z Ltd., a non-resident, outside India.
Royalty is, however, payable by Z Ltd. in relation to a business of manufacturing
carried on by it in India.
8. A Ltd., a non-resident, gets interest from B Ltd., an Indian company, outside India.
The capital was borrowed by B Ltd. for the purpose of a business carried on by it
outside India.
9. C, a non-resident Indian, is presently appointed by the Government of India in its
embassy at Saudi Arabia. Salary for rendering service is paid to him in a foreign
currency outside India. 10. D, a non-resident Indian, is presently appointed by an
Indian company in its foreign branch at Sudan. Salary is paid to him outside India in a
foreign currency.
14. What the different categories are of assesses according to their residential status? How
is this status determined? ROR, RNOR, NR based on business operation nature or
their presence in india as prescribed
15. Assesses have been divided into three categories on the basis of their residential
status. Explain how these categories are defined and how they affect the tax liability
of an assessed?
16. . “The incidence of income-tax depends upon the residential status of an assessee”.
Discuss fully.
17. Discuss briefly the scope of total income of a person who is resident in India.
18. . Under what circumstances an assessed will be considered “non-resident” for income-
tax purposes and on what income he will be liable to be assessed?
19. In what way does the liability of tax of a “not ordinarily resident” person differ from
that of a “resident” person under the Income-tax Act?
20. How will you decide the question of residence of an individual and a Hindu undivided
family?
21. Write short notes on the following :
a. Income received in India
b. Income deemed to accrue or arise in India
c. Control and management of a business
22. B, a not ordinarily resident individual, receives dividend from companies registered
outside India but deriving its entire income in this country. The dividend is declared
and paid outside India. Discuss B’s liability to Indian income-tax on these dividends.