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  • Unit 1 Part 2 - Residential Status

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    TUSHAR
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    2. Unit 1 Part 2_Residential Status

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    17 views16 pages

    Unit 1 Part 2 - Residential Status

    Uploaded by

    TUSHAR

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 16
    Const +3 Persen an ¢ aS lo. el) Jrolivtdueal 2 HUF | ; =] i Rosen Neen E Resi Nen-Residert(NRD 7 Residents P ot Rexnt= Rai bak et vewdunt i = ’ tee (NOR) = 5 aden- 7 K Resident - Needs satlyy ong oh | Pane o - : Satiy Py — 18r.days 6 move, ‘ y] ¥ = 60 days or more Ord preceang OY" ee 365 days in 4 a, 2 \nditans Tuustration() M4 vo-2-9 (Br Naveen wat nde” sate gone pelerniune Ja Teldentiad 4 for Bot AY = pr0- 21 PY = 2alq- 20 (3 rl to aN manv i) we Apt - - 7 30 dunes — f ob dows - But uv ths base, Basie lonolctiin 2 rill net decane Ae. hack Lift for. emplogmint purport Hunt , Non Revident’ for tho KY Aoto-2. asteater 4 Fe ean unig Sg tan lotta tre PY, 2019-20- ug — i days (sto 31 aug.) - 36 — 6% 52 My Net even Rade Condictren 2 felled, fe me as Resiclunt 4 Sndin- Hence, Non Rewiclents- Aust notte Fy 2D Hab om conaslunn etingr commie first tana dating Py a0IS-16 . Siree Hot Ae ia Corn tueray yar On 2 Visit to Gudia. for some days | aoig 16 > 60 days y 206-17 77 G0 days 1-4 > 190 dag, 204 -do 7 7 Bilociniee. sith . jad Anti der AY 2020-21 hice de ts 0 piaon Sudan Ougen - | us 20(-18 > 4 Aatey detition “= Baste gy —» Not as he Constr & posou gy Suclibn. Ciaran basis tonbitin() > tea days mere, dra PY Ay- (2020-21) Py — (2019-20) Fi 0, ke a70s te Sdn fo. oped ttn Hence bre londiton 3. Th met hace De crtrina ROR pLNORs a person meds. to dept’ wer a | fe ed Cinaitnat) py eral Wyolttins ng relowane T7- do@:- 2 ys out of 10 ye Pr ¢ q y 2 ee AD 72D days om Mork ON . ent nfo iki ata ft th eweny financed ir for Cha Lett (8 fetar inch Ot Aid nuh falas for tee ipr-toan-2b fee AY 9020-2) . } PY — 2019-20 C pruseutr Loo cages») Hone i es Lf bwot satin Sate Comditatin 2 60 dogg cr more. (© A es - 36S days Apne [120+100 4 leo+leo Hone Batic Condi? B eats big ts rs cones fabifed. Nous ROR, ENOR., Eddatiowos tonelitcow Rrident bor 2yrs aut logrs tmmaded . . | . Precedung tre relevant PY AD/9-20. He th redolent on Pndow for the Py QolP-19 2 20/7--1g. 6o Ce a + 2 . / 7 be G5) Stays Mastrinad Conditcdu(d 5 POG 865 days 4 420 desig 7 yu i : oy 208-19 To Peecticg Pr {20H 20) amp 2019-18 leo Aaa Cond beer Bd yr 016-1} Bo 4 — e yh yr- BISu-1g 180 Cae, FSO | gf othyr- 2014-15 |b o” F ord bt yr- 8013-14 [00 MOC fet pyr R1Q- 13 leo os FeO Aone - Ape. Calida Nonw- Ren danl - “ | Ritbratis Non ortinardy Risdent H Resicenle |- a “is whew Control ama Aulinatid. ww Sadun. (ov pankly tn, dda ond Lor ond Now Ka sdonts te Re Manager] Kant, is nesidends in ony 5 2YEARE OUT oF Jo Yenes Immenierely fesceeZg ies Eee fdditfend 2, The ‘manager o, HOF 4 prcaenk +n duce. $e Gratien *” 45, on be Jeg FEMS Immmaduo bel Clustrabion (Based on Residential slab of Hor) . Te burdcrose Of an HOF dé trannacta. fromm Gommerep OA Avr ane lahenw oe Iron alin . MrAetha Karta HUE , was bow tn Kolicatan, wel Ivana dusiing the PY 2014-20, oft, a gap ef I cans. He Comes M dndia, OA Ini May 2619 and. Leowres for 6 04 Ao Nouturben 2014, Detomunit peotdenlial etatou 4 HUF bee fa ny 2ot0-ai] PY-20R a olution 3 - patton i HUF. = Retidiat for PY 26{9-20 beccuue§ SOR i Kesiduudod comes of vin k_Kewby = Fo Py 26/9- 20, 22 : Waid Go Boute. Conolibeen 1 Jip — 3 | alg ed re Ad cluttered Conaliltans — 30 ~. ae —3) tebe of / Nov:-—as” Hevree, RoR Heue 200 : Grdion Comping Favela Coop, Lon tw Residont Retin Non donde vy Lb fe uh oe = PoeM ea ee it | Place of LPOEM) — pocin cx are HAA oe nucesiomy der conduct ane (ahem Spent ie Oddy, Wass Lape tp Sect @D [income deomast ta ngeen-or i / _ wos, Base irda | OG, OR COniderecl at clemed de aoenut- Wo Sond A? treegle 8 jan ang bussasa lonneetion Judie . 3) Trough Ov drm iby ss dodin de oath Ble film ony. kabel somes trtome we Indian oF . pst A) parougn jae tore pi’ stitvoded Uv Snell wi » furchare for Repo bay. wen reali | 2) tobecttiw 9 news sotiieon + 2) sneotung of Blow oo Sl og . B) fa ade He Aen Coane “ese easnece ve | docrieenigebi in tn Aan. sala, eee lOkis 1 a Inca [See 4 C1) CY / . ; © pividend pay an. Eedlioa Comparry Outre Indes A (See aclu) Gee cnt) Interest Mca ec ACI) 6) fe Snowe [Soe WY] () Income by way ob bees ry Tioboou fovea [scat PROBLEMS 1. Mr. X, a foreign national (not being a person of Indian origin), came to India for the first time on 16 October 2019 for a visit of 190 days. He furnishes the following particulars of his income earned during the previous year relevant to the assessment year 2020-21: z 2) Interest received from Government of India (Received outside India) 2,50,000 b) Royalty received from a foreign company outside India (Paid for know-how used by payer organization in India) 1,00,000 ©) Income from agriculture in Bhutan remitted to India 3,00,000 ‘Compute the total income of Mr. X for the assessment year 2020-21. (Delhi University B.Com.(H) 2009 (Modified)] Solution Mr. X is a non-resident for the assessment year 2020-21 as he does not satisfy any of the following basic conditions: 1, He was present in India during the previous year 2019-20 for 168 days [16+30+31+31+29+31 = 168 days] and not for 182 days, as required. 2. He was present in India for a period of 60 days or more during the previous year 2019-20 but not for 365 days or more during 4 years immediately preceding the previous year 2019-20 [i.e., during 2015-16 0 2018-19, he was not at all present in India as he came to India on 16 October 2019 for the first time]. 2.14 ML income Tax Law & Practice 2020-21: Computation of total income of Mr. X (a non-resident) for the assessment ye S.No. |Particut a) farise in India and thus, taxa Interest received from Government of india is deemed to accrue/ for anon-resident, - ') | Revaity received froma foreign company (a non-resident) s deemed to accrue/arise in India fie] 0g 'S paid for knowhow used by the payer in india and thus, taxable for anion-resident. Note: ‘Being a foreign company, itis assumed that the place of elfective management is outside India ‘and thus, the foreign company is a non-resident ic) Agticulture income acerued and received outside India and thus, exempt fora non-resident Note Remittance is nota remittarcels done, income. The above treatment is dane for the income and thereafter, when never taxed for any assessee whether resident or non residence because remittance is not treated as an income. Total income 2. From the following information, compute the gross total income of 2020-2 assuming Mr. Y is: (i) Not ordinarily resident, and (ii) Non-resident. 4) Pensions for services rendered in India but received in England: € 1 30,000. 7 b) Remuneration for consultancy service in Canada but half of that received in Mumbai: & 2,00,000, ©) Loss incurred in textile business carried on in Bangladesh but controlled from India: & 75,000. 4) Fees for technical services payable by Z, a non-resident (the payable relates to a business car in India): % 3,00,000, [Delhi Unive Solution Computation of total income of Mr. Y for the assessment year 2020-21: Bee Pension for services rendered in India is deemed to accrue/srise in India| 80,000 [& 1,30,000~ % 50,000 (standard deduction)). b) | Income received in india (50%). 1,00,000 Income accrued and received outside India (50%). — [it is exempt for a non-resident. tis taxable for a resident and ordinarily resident only ifit is from a business controlled (or profession setup) in india. In this case, it is professional income but profession is not set up in India and thus, exempt for a resident but not ordinarily resident.) c) Income accrued and received outside India. (75,000) {it is exempt for a non-resident. Its taxable for a resident but not ordinarily res- Jent only if it is from a business controlled {or profession set up) in India. in this case, itis a business income and business is controlled from India and thus, tax- able for a resident but not ordinarily resident.] Tove are also applied. Non-speculative business losses can be set off against in- Come of any head except salary income and income from lottery, etc Fees for technical services payable by @ non-resident is deemed to accrue/arise in india if the services for which fee is payable is utlized for a business carried on in india 3,00,000 | 3.90000 a) Total income __|_ 405,000 | 4,80) Residential Status Mm 2.15 3, X,acitizen of India, is Working in Dethi with ABC Ltd, He le ~ 3019 tor taking an overseas proje the following incomes: a) Salary from the Indian company received in India for tendering services in India: © 6,00,000, b) Salary from the Indian company received outside India for rendering services outside India: ® 6,50,000. ) Loss ftom business in India: & 50,000, a) Long-term capital loss from sale of building in India; & 80,000. @) Short-term capital gain from sale of jewel ty in India: & 30,000, 5) Short-term capital loss from sale of personal car in Inclia: & 20,000) Compute the residential status and total income of X for the assessment year 2020-21 He deposits ® 70,000 in public provident fund and bought Indira Vikas Patra for & 30,000 during the previous year 2019-20, [Dethi University B.Com.(H) 2011 (Modified)} caves India for the first time on 10 September

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