Vip u.

/2
_ _E~
[- ~,-~e~s~·· Q~b;L·::.e.ct_
xe rc ::_: iv
-_e_s_ ]
Que stio ns (MC Os) :
Mul tiple Cho ice
(1) (Iv) Ent erta inm ent
1) Inco me ta x Is a (Ill) Sta te Tax
( (11) Direct Tax
(I) indirect Tax . are men tioned In
tes of income ax
1 (II) Inc om e Tax Act , 1961
(2) n,e ra I
(I) n,e Annua Finance Act (Iv) Non e of the abo ve
(111) Both (I) S (11) f Mi s XYZ
, Is assessable as (Ill) An Ind ivid ual
(3) Mr. Zack, Partner o (Iv) HU F
(II) Body of lnd lvldual in the term
(I) Flm1 'Inc om e' und er the l~ me
inco me Is not Incl ude d tax Act , 1
(4) wI1Icl1 of_th~ foll~w 1~gry (Ii) Pro fits and gai ns of Bus
iness or Pro f~
(I) Profit 111 lieu o sa a (I ) Reimb urs em ent of trav
v ellin g exp ens ~
o· h ds
(Ill ). iv1'den
(S) Wl11ch of t e o f !low ing is cas ual Income (Ii) Win nin g from lott erie s
(I) Dividend lnc o~e · d
(iv) Inte res t rec erv -
(1"Ii) Pension received e
. . not a capital receipt .
(G) The followin g 1s (' ') Com pen sat ion rec erv . f .
(I) Sale of Know-how 11 •
ed or vac atin g b1
(Iv) Div ide nd on inv est me nt
(Iii) Bonus Shares ..
(7) Mr. Ajay and Mr. VIJay who the legal heirs of Mr. Suj oy will
are be tax ed as
(i) A Local Authority _ (ii) BO 1
(iii) An Individual (iv) HU F
(8) Following is not a head of . .
income.
(I) Salaries ' (ii) Inc om e froi:1 Ho use Pro
.. per ty
(iii) Income from Interest on (iv) Cap ital Ga ins
securities
(9) AOP may consist of
(i) Individual only (ii) Per son s oth er tha n ind
Md ual onl y
(Iii) Both (i) & (ii) (iv) No ne of the abo ve .
.
(10) ~ody ?t. individual should
consi st of (ii) Per ~on s oth er tha n ind Md
(1) lnd1v1d~al o~!Y ual onl y
(I" } Both (1) & (11) (. ) No ne of the ·ab ove
( ) /ne w business was IV
11 set up_ on 15-11-2019 and
it com me nce d its bus ine
previous yea r in this case sha ss from 01-1 ~
ll be -
(i) 15-11-2019 to 31-03-2020
(iii) 2019-20 - (ii) 01- 12- 201 9 to 31- 03- 202
· 0
(12) The year in which the (iv) No ne of the abo ve
income i,s earned is kno wn as
(i) Assessment Year _ _ _ __
(ii) Accounting Yea r (iii)
(13) The year in which the inco Pre vio us Ye ar (iv) Fin anc ial Y ea
me is taxed is kno wn as _ _
· (i) Assessment Year _ __
(il)A cco unt ing Yea r (iii) Pre vio us Ye ar
(14) The _ _ _ _ makes {iv) Fin anc ial Yea
the am end me nt in the form
Tax Act. of om issi ons , ins erti ons and
sub stit utio
{I) Finance Bill Qi) Finance Act
(15) Jawaharlal Nehru port trus (iii) Par liam ent of Ind ia
t is ass ess abl e as (Iv) Fin anc e Min iste r ·
(I) Individual ·
(ii) AO_P (Iii) Com pan y
(16) Mr. X, MD & CEO of X Ltd. (iv) Loc al Aut hor ity
is ass ess abl e a s _ _ _
7) (I) Individual _ -
(1 (Ii) AOP (iii) Com pan y
X Ltd., a One Person Compan (Iv) Loc al Aut hor ity
{I) Individual y [OP C] h • .
(II) AOP avin g onl y one sha reh old er
(18) Mumbai University i Mr. X is ass ess abl e as _
. .. (Ill} Com pan y (iv) Loc al Aut hor ity
(I) lnd1v1dual s assessable as
(II) An Art if . -.----
(19) A Previous Year
ic,al Judicial Per son (iii) Co mp any
{I) Is always of 12 months (iv ) Loc al Au tho rity
(20) ~I) Can be of more than .
ssessm 12 months (ii) Ca n be equ al to or les s tha
(I) last d ent Year means the per (iv) Is al n 12 mo nth
iod ·
(Ill) 1st :: oI March of preced of 12 h wa ys Iess tha n 12 mo nth
ing Acc oun t~o nt s com me s
(21) Under ThJ l~~:prll ter y nci ng on the
year ing Yea r
{I) Always \axab%e. ax Act, 196 (II) 1st day of a cal end ar
1, a capital rece· t. yea r
(Ill) Taxable {Iv) No ne of the abo ve
<22) Under The Inunless speclflc ip IS
ally exempt · (II)' Alwa y_s_e_x_e_m_p_t_
{I) Al come Tax Act 196
(Ill) Tways taxable (Iv) Exe m t
axable uni , 1, a revenue receipt . p unl ess
spe cifi cal ly truced
ess speclflcany exempt 1s
(II) Alw ays exe m t
(Iv) Exe m t P
P unl ess spe cifi cal ly truced
 Definitions
of Mr. Flajoal1 will I.Jo regardoc.J as
(23) Papu (12 yea rs or ago), soI1 (Iv) Looo l /\ulhorlly
(I~ Individual . (II) AOP (111) Company
er from cllen l Is _ __ _ In tho han ds of lowyor.
(24) Gtfl received by lawy
(I) exempt
on
(II) taxable as Income from professi
Inco me from othe r sou rces
(Ill) taxable as
as inco me from prof essi on only If It exceeds Rs. 50,000
(Iv) taxable iety Ltd wlll be assessable as _ _
__
pera tive Soc
(25) New Swapanlok Housing Coo (Iv) Loc al Auth ority
(I) Individual . (II) AOP (Ill) Company
Cre dit coo pera tive Soc iety Ltd wlll be assessable as _ _ __
(26) Sayog (Iv) Local Authority
(II) AOP (Ill) Company
(I) Individual able as _ _ __ _
onal c(ub In Chennal wlll be assess
(27) Green Court Club, a recreati (Iv) Local Authority
(I) Individual ('!) AOP (111). Company
eme nts are Tru e or Fals e:
(II) Discuss whe the r foll owi ng stat inclu ding the state of Jammu & Kas hmi r.
who le of Indi a
(1) Income Tax Act extents to the prev ious yea r Itself. ·
rged to tax in
(2) Income of the previous yea r Is cha
.
(3) Income cannot be received in kind ess ee
but a person may or may not be an ass
(4) Assessee is always a person still be ass ess ee.
essable Income but may
(5) A person ·ma y not have ass the Inco me Tax Act, 196 1.
Assessee mea ns only that pers <:m who is liable to pay tax und er
(6) l yea r.
previous year can be sam e financia
(7) In som_e cas es assessment year and und er Inco me Tax Act, 1961 .
of loss will be regarded as assessee
(8) A pers on filing a retu rn com pan y regi ster ed und er the Cc
For the purp ose ofln com e Tax Act, a company means only a
(9)
1956. Ta~ Act , 1961 ..
tion is taxa ble as Artif icial Judicial Person und er Inco me
(10) Life· Insuranc e Cor pora Inco me iri the han ds of w,f,
ey paid by hus ban d to his wife for her maintenance is taxable as
(11) Mon
er the Income Tax Act, 1961 .
(12) Illegal inco me Is taxable und .
Gift rece ived by a sing er from a client is not taxable as income. yer' ' in Mum bai Cnc keJ
(13). able Pla
keter won Rs. 10,000 "Mo st Valu
(14) Mr. Dhondi, a professional cric l income in his hands.
the sam e is taxa ble as professiona lved .
e taxable income for the-parties invo
(15) Bar ter sys tem can not generat
(Ill) Mat ch the foll owi ng: -
(1) Col um n B
Col um n A
(a) Com pan y
(i) Che nna i Municipal Corporation Indi vidu al
Ropesh and thei r sons (b) An
(ii) . Fam ily of Mr. Ropesh, Mrs . (c) Hin du Und ivid ed Family
Mr. Rop kum ar and Mr. Kamal (d) Local Aut hor ity
(iii) Reliahce Indu strie s Ltd.
-
(e) Artificial Jud icial Per son
(iv) Karan Kap oor
(2) Col um n B
- Col um n A
(a) Ass ess ee
(i) Section 3- (b) Hea ds of Inco me
(ii) Section 14 (c)• Per son
(iii) Section 2(7) (d} Pre viou s vea r
(iv) Section -2 (31)
(3) Col um n B
. Col um n A
.(a) Inco me tax act
(i) Constitution of Indi a ' (b) 1st Apr il; 1961
(ii) Cen tral gov ern men t (c) · App rove s fina nce bill
. (Iii) Inco me Tax Act
(d) Intr odu ce fina nce bill
-(Iv) Rat e of tax •·
(e) Par ent law
(v) Finance min iste r (f) Fin anc e act
(vi) Par liam ent .. (g) Lev ies tax on inco me
(vii) Det erm inat ion of tota l fnco me
I) Fill In the Bla nks : ass ess me nt yea r.
_ Yea r mea ns th~ !
fi lanc ial yea r imm edia tely pre ced ing the .
(1) __ __ · _mon ths or less .
.
s yea r can be of
·(2} Pre viou er the inco me tru
sad par tne r of Mis . MP & Co. is ass ess able as _ _ _ _ _ und
(3) Mr. Mur fi Pra
ve __ __ _ ·
(4) A Bod y of Indi vidu als can only ha
tion is ass ess able to tax ·a s
(5) Mira -Bh aya nde r Mun icip al corp ora g_o _n_ th_ e~- ---- ---- of eve ry 1
per iod of 12 mon ths com me ncin
(6) Ass ess men t Yea r mea ns the _ _ ass ess ee.
_
(7) An ass ess ee incl ude s _ _
 I :
D c (inir,on~

f'AplJ ( 1:;> \'!'Al<: 1,f AQ!') " '"'' 11f 1.' r ll~ 1r<th v 11 '"" rro i
r,f,-, t "'"
(23)
(I) l ndlvldun t ( fl) ,\()f' ( Ill ) C,-.np,,, y ( t .. ) I,,...,, ,,,,..,,.• ,,,
In 1t,.-, t, , ,,.1--. " ' 1-, ,,.,,,,
(24) Gift rf't' !'lvN.1 l'l)I l1h,y1>1 lr,'>f't, , II""' "
( I) !''<f'mpl
(It) tnxnh lo n !'I 11,i' t)mo l r1"" prc,ft'<1<1lon
(111) I O'<n b lo ns IIX.'<.) mo from Otho, S(llfrC(l<I
(Iv) IA'<nblq AS lf)COfllO f rom prolossl on only If II OlCC/llld<I n<1 so
()Oq
btn n.,
(25) Now Swopn"lok Housing CooporoHvo Socloty Ltd wltl bo n1,0<1,n
(I) lndlvlduo l (II) AOP (111) Compon y (Iv) Local AuthOrtly
(26) Crodll cooporollve Society Ltd will bo assosso blo as
S0)1og
(I) Individual (II) AOP (111) Company (Iv) Local Authority
(27) Green Court Club, a recreational club In Chenna l will be assessa
ble as
{I) Individual (II) AOP (Ill) Compan y (Iv) Local Authority
{II) Discuss whethe r followin g stateme nts are True or False:
(1) Income Tax Act extents to whole of India Including the state of Jammu & Kashmir
(2) Income of the previous year is charged to tax in the previous year Itself.
(3) Income cannot be received in kind.
(4) Assessee is always a person but a person may or may not be an asses ses
(5) A person may not have assessable income but may still be assesses.
Tax Act. 196 1·
(6) Assessee means only that person who is liable to pay tax under the Income
year can be same flnanclo l year.
(7) In some cases assessment year and previous
Tax Act, 196 1 .
(8) A person filing a return of loss will be regarded as assesses under Income under the Corrp.ar<9S :
a compan y register ed
(9) For the purpose of Income Tax Act, a company means only
1956.
(10) Life Insurance Corporation is taxable as Artificial Judicial Person
under Income Tax Act. 196 1 -
is taxable as Income in the hands of wile.
(11) Money paid by husband to his wife for her maintenance
(12) illegal Income is taxable under the Income Tax Act, 1961 .
. . . ,
(13) Gift received by a singer from a client is not taxable as income. Mumba i Crick et League 2
Valuabl e Player" 1n
(14) Mr. Dhondl, a professional cricketer won Rs. 10,000 "Most
the same is taxable as professional Income In his hands.
(15) Barter system cannot generate taxable Income for the parties
involved .
(Ill) Match the followin g:
( 1)
Colum n B
Column A
(i) Chennai Municipal Corporation (a) Compa ny
(ii) Family of Mr. Ropesh, Mrs. Ropesh and their sons (b) An Individu al
Mr. Ropkum ar and Mr. Kamal (c) Hindu Undivid ed Family
(iii) Reliahce Industries ltd. (d) Local Authori ty
(Iv) Karan Kapoor (e) Artificial Judicia l Person
(2)
- Column A Colum n B
(i) Section 3 (a) Assess ee
(II) Section 14 (b) Heads of Income
(111) Section 2(7) (c) Person
(iv} Section 2(31) (d) Previou s vear
(3)
Column A Colum n B
(I) Constitu tion of lndla (a) Income tax act
(II) Central governm ent (b) 1st April, 1961
(Ill) Income Tax Act (c) Approv es flnance bill
(Iv) Rate of tax . (d) Introdu ce finance bill
(v) Finance ministe r (e) Parent law
(vi) Parllam ent (f) Finance act
(vii) Determ ination of total Income (a) Levies tax on Income
(IV) Fill In the Blanks:
assess ment year.
(1) _ _ _ _ Year means th~ fl,:ianclal year lmmedl ately preced ing the
·c2) Previou s year can be of · months or less.
(;3) Mr. Murli Prasad partner of Mis MP & Co. Is assess able as _ _ _ _ under the income tax act.
(4) A Body of Individu als can only have _ __ _
_ __
(5) Mira-Bh ayande r Municip al corpora tion is assess able to tax ·as _
the _ _ _ _ _ of every year.
(6) Assess ment Year means the period of 12 months comme ncing on
(7) An assess ee include s - - - . - - - assess ee.
 •
v,,,,,,,,1,., ~
:'J'"l"l'" ''ec t
~..~.,. r-:-:i i
.rocolvod by M r.
X In h
o of Pa· .
ld In M um ba ox~ 0 no
1alch lo I.Jo ho
111di8 -A us lw lla- :11- Income In lho ha nd s of M r. .
X. rn1~
- - -: x Ac l, 19 61
8 ~o - co m o Ta
( ) Fraa 1/ckals ;:~ :: ~f io rg ln g so cll on /n tho ln r lh e Income Tax
Act
' 1961 .
s tad ium Is la _ _ ca le go rle s un de - - - ,
- - --=- . In _ _
1 d 'v/dod. - - - - - - - - - - ::::-;--:----
-:-- : -
]
(9) ''Parson s , es
(1 0) Tho to,m
/ A1tswe1's: O b je ct iv
. (I), 14. (II), · ('N), 18.
9. (Ill ), 10 . (/) , 11 ...(/) , 12. ~ii.i), 13 , 15
(Iv ),
), 7 (II), 8. (Ill24 (II) , 26 . (11), 27. (l1) 1
) 5 . (II), 6. . (II) , 25 .
. 4 (i . (iv ), 22 . (Ill), 23. (/),
· (~/ )
1. (ii), 2. -~1), 3. O!I),, 20.5 I 7' 8 10, 12, 14
21
(I)
(iii), 18. (11), 19. (:/) 4, , ' , 13 15
(II) True sta
tements. 1, !, , .
False statements:
2, 3, 6, 9, 1
, (!!I) - (a), (!v) =(~).' .•
. .
1: (i) - (d) , (_i_i).., (c)
(!!> - (b), <!!!)~(a), t> _ ! (f (v) _ (d ), (vi ) - (c) , (v ii) - (a) .
l Au th on ty , (6)
April (7)
1s t ._ Ae pre senta tr·

~
2: (i) - (d) , als , (5 ) Lo ca
(Ill) 11 (4) Individu
, (m
( ) -(?)(g)-12 ) ) ~)n, n~i vi ~t al ' -- 7
3: (i) -ev(~), s, , (3 -= = -- -- = -- :- -;
(IV) (1) Pr iou
4, (1 0) s_ e_ v_ en _· -- -- --
Section /
Professional, .(9) ti ca l
/ Exercises: T h eo re
e. (f) Person. (g
) Previous yea
) As se ss m en t Ye ar. (e) In co m
(d
tes on: (Define)
( ) As se ss m en t. Gi ve an illu str at ion of ea ch .
(1) Write short no . (b) Assed~seet. t~ eir le ga l st at us · . t .
.
Annual value
(a) r mg o
sessees ac co t is co rre c
(2) Classify as . wing st attaem
wh et he r th e follo . x" en . t." Explain.
. on s ee un de r th e In co m e Tax Ac
. (3) Di.scuss g,vmg reas h~ m ay be an as se ss . :
o is as se ss ed t~ m co ;;e t . -· .
"An as sessmee is ont
e w~
be lia ble to pa y an y. ax an .
ay no
(4) "A person en,! ,s correct. -
r th e ab ov e statem
reasons, wh et he sm e~ t . .
x la w". Commen
t
ly th e te rm "a ss es r th e In co m e ta
(5) Describe brief wi de ly de fin ed te rm s un de n the tw o.
ent Y~~~-e m os t tio ns hi p be tw ee
-c ur re ~t asses,s_m s ye ar• A/ so . ex pl ai n. th e re la ,
(6 ) W ha t is th~ o d P~ ev iou
he de fim t,o ofeeIn
ntw n co
As
ismon
e ss
mse enet ye ar an Ac t, 19 61 . ·
(7 ) 'T h be 1e Ta x
(8) Distinguis e" un de r th e lnc
o':
nc ep t of "In co m
(9) Discuss the co dl /
/ Exercises: ·P ra ct ic
wing persons?
atus of the foll~
(1) What Is the st l Corporat .
ion . ·.
(a) Pune Municipa
uc at ion So cie ty.
(b) Bo m ba y Ed
Ho us in g Society.
(c ) Su ru ch i Co-op.
Lt d. .
(d ) J & K Ba nk .
rt Trust. an d C)
(e) M ad ra s Po ip be tw ee n A, B
Sa /e s Co rp or at ion (a pa rtn er sh
(f) National
rsity.
(g) M.S. Unive iva ni Po dd ar. ·
Sh iva n/ Te xti les, Pr op rie to r Sh .
(h) ar ch ite ct s. )
(I) M er ca to r Lt d. na l pa ·r tn er sh lp be tw ee n two
rn er (A pr of es sio
0) Architectural Co nc ha ya t:
Ch ipl un Gr am Pa
(k)
a Ltd.
(I) Ne w Ba nk of Ind/ .
in or so n of M uk es h.
(m ) Jash, a m un so un d m in d. in ed.
(n ) Mansukhla
l, a pe rs on of no t be in g de te rm Aull
th e sh ar e In pr of its in co m e eq ua lly
.
(o) A Joint vent
ur e be tw ee n A, Ba
tru
nd C,
ct ed a ho us e Jo
intly an d wh o s
_ ha re
f
th
pe
e re
rs
nt
on s, (d ) Co m pa
ny , (e) oca 1 on
it
f
ha ve co ns so ci at io n o nt y, (I );
P, Q an d R, wh o
du al s, (c ) As ) Lo ca /'A ut ho
(p) (b) Bo dy of ln dl vl pany,· (j) Firm, (k
[(a) Lo ca l Author
ity, dividual, (I) Com (p ) B od y of In tit
) Ar t/f ie /a / Ju rld lc al person, (h ) In , (o ) As so ci at io n o f Pe rs on s,
(f) Firm, (g ), ln dl vl du al
(m) Individual, (n
. previous year for the tollo~lng: .
e
(2) Determine th 1.
(a) As se ss m en t ye ar 2020-2 se ss m en t ye ar
20 20-2 1.
s on 3r d Ja nu ar y, 20 20 fo r As ar 20 20 -2 1.
Ne wl y se t up bu
sin es ss m en t ye -04-2019 to 31-03
(b ) n on 1s t Ap r/I, 20 19 fo r As se -03-2020, (c ) 01
y se t up pr of es sio 01 -2 02 0 to 31
(c ) N~ 31-03-2020, (b ) 0~
. [(a ) 01-04-2019 to
 32 VipuJ,.'tM
.. o·
than govern ment pla ''.ec
(b) Paid by a Resident or non-resident: (I.e. If payer Is other , ce matter s
' Paver do
I.e. es
lndla, hence Indian
(i) Funds/ service s used In lndla: Income deeme d to be earned In I
d to be earned In I di ncorne.
(II) Funds/ service s used outsid e lndla: Income NOT deeme n a, henc e Nor an
Income . 1r.
Pa er matter s, Income a/wa s Indian Income
Payer Is 3ovcrn mcnt, stale or centre
Place matter s, I.e.
Payer Is other than sovcrn ment
(I) Funds used In lndla - Indian Income .
(II Funds used outside India - Foreign Income.

Exercises: Obje ctive s

(I) Multlp lc Cholco Quest ions (MCOs ):
(1) Rosldontlal status Is determ ined for:
(II) Previous Year (Ill) Accoun ting Year (Iv) c 1
(I) Assessment Year
l!al depend s on his/her : - a 8ndar Year
(2) Resldential status of an lndivld
(I) Citizenship (II) numbe r of days in India during previou s year
(Ill) Both (I) & (ii) (Iv) numbe r of days in India during Assess ment year
(3) A HUF Is said to be resident In lndla If _ _ _ __
years immediately preceding the
(I) The Karla has ~een residen t in India for at least 8 out of 10 ~
. .
pre~~~~
d in lndla.
(II) Control and Manag ement of its affairs are wholly or partly situate
has a house in India where some of Its membe rs are living.
(iii) The family
s year.
(Iv) The membe r of such HUF Is in India during the previou
t In India if _ _ _ __
(4) A HUF is said to be resident and ordinar y residen
The membe r of such HUF is in India during the previou s year.
(i)
d in India.
(ii) Control and Manag ement of its affairs are wholly or partly situate
residen t inIndia for at least 8 out of 10 years im'med iately preceding the relev,
(Iii) The Karla has been
previous year.
(Iv) Both (ii) & (Iii).
(5) A Firm is said to be a resident in lndla if:
(i) Any of Its partner s are resident in India." .
(ii) Its Control and Manag ement of its affairs are wholly or partly situate d in India.
d outside India.
(iii) Its Control and Manag ement of its affairs are wholly situate
are wholly situate d in India.
(Iv) Its Control and Manag ement of its affairs
(6) An Indian compa ny is said to be a residen t in India:
(i) · Always a resident in India.
d in lndla. _
(II) Its Control and Manag ement of Its affairs are wholly or partly situate
situate d.outsi de India.
(iii) Its Contro l and Manag ement of its affairs are wholly
in India. ·
(Iv) Its place of effective manag ement is
(7) A Foreign compa ny.is said to be a resident in India:
(i) Always a residen t in India. · ··
situate d in India.
(ii) Its Control and Manag ement of its affairs are wholly or partly
situate d outside India.
(ill) Its Contro l and Manag ement of its affairs are wholly
is in lndla. ·
(iv) Its place of effective manag ement
born i h undivid ed India.
(8) An individual is said to be of lndlan origin if _ _ _ _ are/ls
(I) He himsel f (II) any of his parent s
(Hi) any of his brother s/sister s . (Iv) parent s or grandp arents
me,it becom es residen t in India if he stays in India for
(9) An Indian citizen leaving India for the purpos e of employ
at least .
182 days or more during relevant P. Y. _
(I) ing current P.Y.
4 P.Y.'s preced
(II) 182 days or more during rel~van t P.Y. and 365 days or mpre during ing current P.Y.
or more during 4 P.Y.'s preced
(Ill) 60 days or more during relevant'P.Y. and 365 days - .
·.
(Iv) 60 days or more during relevant P.Y. he stays In Indr a for
81
becom es· residen t In India if
(10) . An Indian citizen or a person of Indian origin visiting India
least · ·
· · -
(I) 182 days or more durir:,g relevant P.Y.
4 P.Y.'s preced ing current .P.Y,
(II) 182 days or more during relevan( P.Y. and 365 days or more during
t P.Y. and 365 days or more during 4 P.Y.'s preced ing current.P.Y.
(Ill) 60 days or more during relevan · .
(Iv) 60 days or more during relevant P.Y.
 33
harge
Basis o fC
eh
e· . e xable In th ands of:
ome rac India in th revious Year Is ta
(11) . Inc o t O rd' IV~d in nt
p (II) Res/d
ent
(i ) N ~ ~ s r~ side e o f ta tu s sfdent
(I ii ) A ll ass~~ .
~ tiv
irrespecabl ~ res identia
l s
p e c t/ J ~ v ) ~~n-Re ent/a/ status:
12,1 e Is tax s /rr~s elr res /d
- incom ~ssesse ln~ntd .,a
( 1 _ :m~~~II rece ived
,~ii::::
I r d e e n .
(f ) e d o v e b e
Receiv e e m e d to oh vae been a rued In India .
d a cc
(I f) crued o r .
d /o r (i~)c lndla
(i ii ) a n e b u t la te r on 0 Is re m,tted to
th B 0
131
.
( iv
( ' Income o
)
N
t'
o n e
f R s.
o f
22/ ov~
.o o o is re ia.
J
ceived In Ordon by a r~s id
ent o f In d ia . R s . 2 5 ,0
2 ,5 0 ,0 0 0
-::---- .
.
in ln~ (Iv) Rs .
: 5,ooo's
a x a b le
(11) As. 2 2 5 0 0 0 (I I/ ) N IL
.
(I) R s. 2 al can b - dur'' ~ ~ /r e v io u s yea
r. J
ident [NR
(1 4 ) A
n Ind iv id
ent
u
b
(i ) Res idid e n t~ ~ :~ : Ord
:
lnari
- - -
e a - : lv_ A e s id e n i' ~
-
1 ~J Non-R
) ROR,r.A
e s
NOA o r N R
s re s id e nt [RORJ (_ a
(i ii ) Re ea dlnary durin th e previous ye t [RJ
A F ir m can b . e s id e n t [RN g (!I) Resid
en
(1 5 ) id e n t b t N o t C?rdinari/y R [RORJ OR] (I V ) A o r NA
(I ) R e s t
ide u ordinary residen (vi) ROA R o r NR
( ii i) Res a nd al ;/ N O the abov
e
) N o n -R n ltd
n t [N R ] e s id e n t In d iv id u
(I v ) none o f
(v .e
. . e s p e fo r R • ~ ~ t; Ordinary R ~rate
(i ii ) Mod ve
T, ty sco es1d ual is· f the abo
1 a x a b 1 l1 a o w e s t . e n t In d iv id (I v ) none o
< (I) Wid e s
~ ) t !~~ a rr rd ry R es id • ·
r a Resid ) Nbut not O ina (I f te ove
s c o p e fo ( '' I) Mode ra o f the ab
) T a x a _b il it y II a rr o w e s t
u a l is : (I v) none se o f
(17 ivid ca
(I ) W id eit y
st ident Ind ( T ) oderate xable in
x a b il e fo r a Non-R~s o w e s t . ! ' M
y in to In dia are ta
(18) (i Ta t -s c o p (1/) Narride Ind· irectl
) W id e s c;1ved d
. e o r a rise outs rily re~~d~~tt are;~ R .
9 ) I :s w h ic h a c c ru i) Both ordina an .
(1 ncom (i es f: .
t.o n ly e assess in case o
0! R e s id e n e n t (iv) A ll th In d ia is taxable OR
-r e s id e in N
( ll l) N o n e o r aris ident and
e m e d to ac~~u th ordinarily res in case o
f:
) l~ c o m : d o n /ye (ii) B o
e a s s e sses In d ia is taxable
0 m
(2 e n t_ •(iv) A ll th fro
~i) R e s ,d e s id e n t
(111 ) N o n -r
~ l) t: i~ ~!~;~;
1 r !! ~ !~ :: ~ ;~
t o n ly
n g ~ ll e d
d ia ta xable in
case of·
·
~'t:{:f cr~e ( reside n utside In
21 d :~ :~ ~ tc
ord in a ri ly
re c e iv e d o
·
< ) (Iv) t:Jot and a ls o 0 h It p a c e
I
o n -r e _ s,dent s e o u ts ide India ident and NOR . y . 2019-2 .a2s01s9-20.
(iii) N e ~ r a ri a ri ly re s u rin g p
h ic h a c c
ru ordin nly res d .
India tor
P.Y
come w (1i) Both inarily resident o ver o f R
s.45 cro _ _ in o f the ab its
ove
(22) In R e s id e n t o n ly (i v ) N o t o rd
h a v in g tu rn o
e d a s _ _ _
t (I v ) n o n e
0 fr as
(I ) t dura s gard siden 2019-2
-r e s id e n ddin' Hon. will b e re inarily re res during P.Y. P.Y
( ii i) N o n p a n y re
g is te re
. 1n ,a, this co m p a n y
(i ii ) N _ o t o rd
.8 2 cro _ in In d ia fo r
as _ _ _ _
a c o m ,n · . ts o f R s
L td., ment esident s receip .
(23) Kf u e~t ·rye m a n a g e (i i) Non-r dos having gros ill be regarded ove
~ e11 . . a w o f the ab
e s id e n t . g is te re d In Ba rb
, th is compan ·
y
e n t (i v ) none P .Y . 2 01 9
( i) R c o m p a n y re m e n t in India .
rd in a ri ly resid
c ro re s du ring ;;
L td., a anage o s .100
(24) P e o f e ff e c ti v e m
~ (I ll ) Not c e ipts o f R garded as ·
t s s re
p la c esiden ing g ro ill be re
2 0 1 9 -2 0
. (i i) Non-r d & Tobago hav this company w e above
n t d In T ri n id a
id e In d ia ,
(I v ) n one o f th
e re u ts ent
(I) R e s id o m p a n y re g is te m a n a g e m e n t o rily resid
L td ., ac e ff e c ti v e (i ii ) N o t ordina s reside
nt
(25) Q a s it s p la c e o f
t _ a ll b e "t reat~d a
h
20 h 0 1 9-2 0. -residen alse; ily vaca
tion s .
r P. Y. 2 (i i) N o n rue o r F us y e a r fo r fam
In d ia fo a r e T
ent tements uring the previo
(i ) R e s id r following sta d en u /s 6
(1 ).
. th e v e s Ind/a itions giv nt in Ind
ia.
is c u s s whe
iz e n , w h o le a e c o n d t n-reside
(II) D ia n c it n y o f th e s id e n n t o r n o id e n t
A n In d s fi e s a ident o r
n o n -r inary res
ide
nt o r No
n -r e s
(1) if h e s a ti re s t o rd id e
In d ia o n ly is e it h e r
siden t, n o arfly R e s al status
ia n c ompany s c a n b e re e n t, N ot-Ordin 4 . -H is residenti
A n In d and fi rm Res id 03 -0
(2) ls H U F rd in a ry in India. s in c e 20 . .
) ln d /v (d u a c la s s if ie d a s O re d a s resident ays e v e ry y e a r rd e n tr al status
(3
H U F can'be a y s ·c o n s id e d ia ~ o r 10_1 d .
2 -0 3 . H e r res
(4) · A o f In dia
is a lw ~/, visit
s l~
ia . ~ r s in c e
200 . . s
) A c it iz e n fo re ig n nation re s 1d ~ n t m Ind d a y s ~ v e ry y e s1 d e n t1al statu
(5 rr is , a in a ri ly o r 1 ~ 8 . . H e r re
Mr. M o Is o rd dIa ~ -14
(6) 0 1 9 -2 0 visits ~n c e 2013 . .
e v io u s y e a r 2 re ig n n a ti o n a l, e n t tn Indra. e v e ry y e a r s rn t ,n any
o
p r l, a fo ri ly re s id 8 d a y s re s id e n
Ms. R a c h e
is o rd in a ia fo r 1 0
' . - o ~ b ~ a
(7) 019-20 is it s .I n d'de t . 1 d ,a. . he cann
s y e a r 2 d 'a n c it iz e n , v ~ m n therefore
p r e v io u I , 1 9 -2 0 ,
fl , a ri ly re s y e a r 20
8) M . p a , • a n n0 1 9-2 0 is o rd in ia fo r p re v io u s
( s s ye a r 2 n t in In d
previo_u a s h , is re s id e
P ra k 019-20.
(9) M r.
re v io u s year 2
fo r p
c o u n tr y
~
/ ·7
""
/ /
 JJ
Bosis o( Charge
yoor Is taxoblo In tho honds ol:
(11} lncomo rocolvod In lndla In tho provlous (11) Rosldont
(I} Not Ordinarily rosldont (Iv) Non-Rosldont
ontlol status.
(Ill} All assossoos lrrospoctlvo of rosld pocl lvo of tholr rosldontlol status:
for all assossos lrros
(12) _ _ _ _ lncomo Is taxable rocolvod In lndlo .
(I) Income Rocolvod or doomed to havo boen ued In lndla.
ed to havo been accr
(II) Income accrued or doom
(Ill) and/ or (II)
(Iv) Non e of tho above
India
ived In Jord on by a resid ent of India . But later on Rs. 25,0 00 Is rem lttod to
(13) Income of Rs. 2,25,000 Is rece .
_ _ _ _ Is taxable In lndla (Iv) Rs . 2,50 ,000
(11) Rs. 2,25 ,000 (Ill) NIL
(I) Rs. 25,0 00
_ during the previous year.
(14) An Individual can be a _ _ _ (II} Non-Resident [NR ]
t [RNOR]
(I) Resident but Not Ordinarily Residen (Iv) ROA, RNO R or NA
]
(111) Resident and ordinary resident [ROR
_ _ during the previous year.
(15) A Firm can be a-:- -_ _ _ _ _ (11) Resident [R]
t [RNOR]
(1) Resident but Not Ordinarily Residen (Iv) A or NR
]
(111) Resident and ordinary resident [ROR (vi) ROR, RNO R or NR
.
(v) Non-Resld~nt [NA]
(16) Taxabllity scop e for a Residen
t & Ordinary Resident Individual is: (Iv) non e of the abo ve
(II) Narr owe st (iii) Mod erat e
(I) Wid est is:
(17) Taxablllty scop e for a Residen
t but not Ordinary Resident Individual (Iv) non e of the abo ve
Narr owe st (Ill) Mod erat e
(I) Wid est (II)
ident Individual is:
(18) Taxablllty scop e for a Non-Res st · (Ill) Mod erat e (Iv) non e of the abo ve
(II) Narr owe
(I) Wid est taxa ble in case of
whic h accr ue or arise outs ide indla but are received direc tly into India are
(19) Incomes
(I) Res iden t only (11) Both ordinarily resident and NOR
(Ill) Non -res iden t (Iv) All the assesses
(20) Inco me deem ed to accr ue or arise in India ls taxable in case of:
(I) Res iden t only (II) Both ordinarily resident and NOR
(111) Non-resident · (Iv) All the assesses is taxa ble in case of:
from a business controlled from Indi a
(21) Inco me whic h accr ue outside India
(I) Res iden t only (II) Both ordlnarlly resident and NOR
(Ill) Non -res iden t (Iv) Not ordinarily resident only a taxa ble In case of:
ide India and also received outs ide Indi
(22) Inco me whic h accr ue or arise outs
(I) Res iden t only (II) Both ordinarily resident and NOR
·
(Iv) Not ordinarily resident only plac e
(Ill) Non -res iden t
Hon dura s havi ng turn over of Rs.4 5 cror es duri ng P.Y. 201 9-20 has its
(23) K Ltd., a com pany regis tere d In Indi a for P.Y. 201 9-20 .
man age men t In India , this com pany will be rega rded as _ _ _ _ _ in the abo ve
of effective (Iv) non e of
(II) Non -res iden t (Ill) Not ordi nari ly resi den t
(I) Resident .
ipts of Rs.8 2 cror es duri ng P.Y. 201 9-20 has its
P Ltd., a com pan y regis tere d In Barbados havi ng gros s rece In Indi a for P.Y.
(24) ·
, this com pan y will be rega rded as
place of effective man agem ent In India
2019 -20. (Ill) Not ordi nari ly resi den t (Iv) non e of the abo ve
(II) Non -res iden t
(I) Res iden t 00 cror es duri ng P .Y. 201 9-
a com pany regis tere d In Trin idad & Tob ago havi ng gros s rece ipts of Rs.1 rded as _ _ _ _ _ _ in
(25) Q Ltd., be rega
men t outs ide India, this com pan y will
20 has Its plac e of effective man age
India for P.Y. 2019 -20. (Ill) Not ordi nari ly resi den t (Iv) non e ot the abo ve
. (I) Res iden t (11) Non -res iden t
nts are Tru e or False:
(II) Discuss whe ther following stateme sha ll be"t reat ed as resi den t In
n cltlz an, who leav es lndla duri ng the prev ious yea r for fam ily vaca tion ·
(1) An India
ition s give n u/s 6(1 ).
lndla only If he satisfies any of the cond
or non-resident.
(2) An Indian com pan y Is eithe r rasld ent
resid ent or non -res iden t In Indi a.
(3) lndlvfduals, HUF and firms can be resident, not ordi nary Non -res iden t.
Resident, Not- Ordl narn y Res iden t or
(4) A HUF can be clas sllle d as Ordi nary In India .
(5) A citizen of India Is alwa ys·c onsl dare d as resid ent resi den tial stat us f 0
(6) ign natlo n(ll, visit s India for 101 days eve ry yea r sinc e 200 3-04 . His
Mr. Morris, a fore .
ent In lndla.
previous yea r 201 9·20 Is ordi nari ly resid 2-03 . Her resl den tl I t t f
(7) Ms. Rachel, a fore ign natio nal, visit s India for 108 day s eve ry yea r sinc e 200 a s a us c
ent In lndla . ·
previous year 201 9-20 Is ordl narl ly resid t" t t f
n for 108 day s ever y yea r sinc e 201 3-14 Her resi den ta1 s a us <
(8) Ms. Patil, an lndla n citizen, visit s .lndl ent In lndla. · . •
prev lo.us year 201 9-20 ls ordi nari ly resid can not be a •ct t .
prev ious yea r 201 9-20 , ther efor e he rest en m any oth
(9) Mr. Prakash, Is resid ent In lndla for .
coun try for prev ious yea r 2019 -20.
r rson of Ind/an orig/ b
Vipr,111111
Diric,
34 A w/11 bo considered a pe
S born and bought up In US n ecauso hisla
1 11rnabod, Pakistan In 1968. nsidered a perso n of Ind /a . the,
(lO) ~;~, 1~ ;i,i; Ca na da w/11 be co boea
and bought up In n origin
Mr. Kumar Thapa, born Ne pa l In 19 56 . / ii'➔
thm an du , pe rson of Ind
(l 1) ,or was born In Ka En gla nd bo rn w/11 be considered a
in b0ca 11t
ught up In an or/g
~o11Mehar born and bo ng .
lad es h In 1_945. , .
11
rn In Dh aka , Ba rso n of Ind /a
<12) gr!;,dfathe; was bo 1 be considered a pe
bought up 1n France w/1 n orig,n baca°'-1
) M Kukareja born and k!s tan in 19 44 . .
Karachi, Pa rued or arises .
(lS gr:·ndmother ~as born In es ld~ nt 1s always deerr:ed as acc
rnm~nt of Ind ia 10 no n-r utilized for a bu' .mInc,~.
( ) Interest payable by Gove to an _
o (he ~ no n-_r es1 de nt on loans which was srnessst
n-resident
( 14
S) Interest payable by a no ed or arr ses 1n Ind ia. bus ine s •
in India will be deemed as
accru llzed tor a 1
1
nt to a no n-r es ide nt on loans which was utl s s lua1 ed W.;
ide
( ) Interest payable by a res
16 deem ed as ac crued or arises in Ind/a. deemed to be a resident
in
India wil l be
Ind ia du rin g pre vio us year 2018-19 will be . IO<f.
( ?) Mr. Parag, a resident in 6(1 ) and
1 cond itions u/s 0
previous year 2019-20
. India if he fulfills both neor lhet
An Individual is sa id_to
be ordinarily resident in ye ar. .
(18) relev an t pre vio us
) during the
conditions given u/s 6(6 accrue in India. ·
in Delhi Is deemed to p & Cb Finland for oil
(19) Profit from sale of sho p
Ind us trie s Ltd , an fnd ian company to Mi s Klo Ind ian com pan y. exp/ orG
Ramesh Ltd is an
(20) Technical fees paid by as .Ramesh Industries m
ssi a will be deem ed t~ have_accrued in l_ndia ntrolled from New Delhi is taxable in I 1
In Ru ca bu t pa rtly co . n ai'J
business 1n South A{n
(21) Income earned from a ivid ua l. Ind ia for "·
arily Resident Ind nirolled from Sri Lanka
is taxable In
Resident but Not Ordin Mu mb ai bu t wh olly co . a~
business in
(22) Income earned from a . . Indiafor 1,
~~ nka bu t wholly controlled fro
m Mumbai is taxable In
. a iO
busin es s in Sri La
(23) Income earned from a e in Ind· ,
ai is taxabl
Resident. Sri La nk a bu t wh o(ly controlled from Mumb 1
,a '°'
rned from a bus iness
In
(24) Income ea
Resident.
(Ill) Match the followlng:
Column B
(1) I
I Co lum n A Non-resident
ia for the first time on
I (a)
(i) Mr. Roshan, who left Ind (b) Resident
10/ 10/2019 for world tou
r rily resident
45 da ys du ring (c) Resident but not ordina
Mr. Raju, who is in Ind
ia for d Or dinarily resident.
(Ii) (d) Resident an
the pre vious y~~ r. e on
for the first tim
(iii) Ms. Kapoor v1s1ts Ind/a.
10/05/ 20 19 tor 20 0 days
Comoanies Act, 1956
1
(Iv ) M Ltd. reaistered under
2) ·co lum n B
Co lum n A n-resident. I
(a) A firm is -resident or no rily res ide nt
Section 6(1) no n-o rdina
(i) (b) Or~in~rily resid~nt or I
Section 6(2) nt or non-resident.
(ii) (c) An 1nd1vidual is a reside
Section 6(3) or non-res/dent.
(Iii) .. (d) A company Is resident
Section 6(4) non-resident.
A-HUF is a resident or
(iv)
e of income makes a
persoo
(v) Section 6(5) l(e(t)) Resident for on e so urc
om e du riria the P.YJ

;;~===~~~~~======~
(vi) Section 6(6) urce of inc
resident for all other so
~
~~•
3
Column B
~A ~- --- --~ ' ed in Ind ia.
. im ~n (a) Not same as receiv OR & NA·.
!')
I"!! ,~ ~fWius
{ii) Na
des
rrowe
oppe
t sco
tsc
st_sco
e;of
pe
C~
ciitax
of
llitylu;
abo~
taxabillty (b) Taxable for RO A; RN
(!Ii) Income earned in
e rem itte d to
Ind/a.
India.
I
(c) Taxable only for
ROR.
__. J
(1v) . Incom · (d) .ROA
Inc om e ear ned an d received out of Ind 18 · (el NA .
I (v)
{IV) FIii In tt,e Blanks
:
for the ur ide nt in ·Ind ia du ring the previousff
(1) An ln~1an citizen leaving Ind /a ent will be a res
or ~o:eose of employm
(2) 1e 'i5 ~~ l_ ndla f o r - - - - days I . . . - · I di duriM
n iv1d ual (ag e 26 yea rs) lea vin 9 nd1 for lhe first time on 15/06/2019 will be - - - m n a
n a · - . .,
P.Y_. 2?19-20. · · . 05/2019 WI/
(3) An ind ividual (ag Ind ia for the fir t se of em plo ym en t on 15/
be e 24 _years) leaving201 9-20. . s I/me for the purpo
--- . - In India during P.Y.
 Basis of Cl,arge 35

(4) An Individual will be considered as a person of Indian origin II his paronts or grandparonts woro born In
_ _ _ _ India.
(S) Mr. Karan a person of Indian origin visits India on 14/10/2019, he will be regarded as _ _ _ _ In India
during P .Y. 2019-20. .
(6) A company registered In India will always be _ _ _ _ In India for the purpose of Income Tax Act, 1961 .
(7) Income received in India will be _ _ _ _ for non-resident. '
(8) Income earned In India will be _ _ _ _ for resid!')nt but not ordinarily resident.
(9) Income earned & received o~tside India will be taxable only for _ _ _ _ .
(10) Income earned & received outside India but remitted to India will _ _ _ _ for· a non-resident.

~-·_A_n_s_w_er_s_:_O~bz'-·e_c_t_iv_e_s_ __.l,
(I) 1. (ii) 1 2. (11), 3. (ii), 4. (iv), 5. (ii), 6. (1), 7 (iv), 8. (iv), 9. (I), 10. (I), 11 . (iii), 12. (iii), 13. (Ii), 14. (Iv), 15. (iv), 16. (I) , 17.
(iii), 18. (Ii), 19. (iv), 20. (iv), 21 . (ii), 22. (i), 23. (ii), 24. (I), 25. (ii). •
(II} True statements: 1, 4, 7, 10, 12, 13, 14, 15, 19, 21, 22, 24
False statements: 2, 3, 5, 6, 8, 9, 11 , 16, 17, 18, 20, 23
(Ill) 1: (I) - (d), (ii) - (a), (iii) - (c), (iv) - (b).
2: (i) - (c), (ii) - (e), (iii) - (d), (iv) - (a), (v)·- (f), (vi) - (b). .
3: (I} - (d), (ii) - (e), (Iii) - (b), (iv) - (a). (v) - (c).
(IV) (1) 182, (2) Resident & Ordinarily Resident, (3) Non-resident, (4) Undivided, (5) Non-resident, (6) Resident, (7)
taxable, (8) taxable, (9) Resident & Ordinarily Resident, (1 O) not be taxable.

Exercises: Th~oretical
(1) · · "Section 4 of the Income Tax Act, 1961 ls the charging section" Discuss.
(2) Classify the assessee according to his residential status.
(3) What do you mean by "Residence of an Assessee"? What Is its importance In the ,scheme of income?
(4) Define and explain:
(a} Resident (b} Non-Resident (c) Resident · and ordinarily resident (d) Resident but not ordinarily resident.
(5) Distinguish between:
(a} Resident and non-resident. (b) Ordinary resident and ncit ordinary resident.
(6) Explain the tests of 'Residence', under the Income- tax Act, 1961? ·
(7) When do tlie following persons become Resident under the Income-tax Act 1961?
(a} Individual • (b) Hin<;lu Undivided Family. _ (c) Firm
(d) Company (e) Association of persons. (f) Local authority
(8) What are . the tests of 'Ordinary Residence" under the Income-tax Act, 1961? OR Under what circumstances
Resident becomes Ordinary Resi9ent? .
(9) When does a Resident Individual become Ordinarily Resident?.
(10) When does a Resident H.U.F. become Ordinarily Resident?
(11) Explain: "Once a firm, a comp.any, or an A.O.P. is Resident, it i~ always Ordinarily Resid_e nt".
(12) Explain the "scope of total income" under the Income-tax Act, 1961 .
(13) Which incomes are covered within the scope of total income in case of:
(a} Ordinary Residents. (b) Not Ordinary Residents. (c) Non-residentsJ
(14) "Income received in India or accruing or arising in India is .chargeable irrespective of the residential status of
assessee" - Elaborate the statement. · · ·
(15) Explain or write notes on:
{a) Income deemed to be received.
(b) Income deemed to accrue or arise in lndla.
(16) Give 2 examples.eac h, of income which Is:
(a) deemed to be received in India
(b) deemed to accrue or arise in India. ·

I. ·•Exercises: Practical
(1) Brahmanand, an Indian scientist left India for New York on 15th March 2018. He returned to India on 15th
2019. He has got an ownership flat in Mumbai. ·
Determine his residential status for Assessment Year 2020-21 . ·

(2) Sh . . · . .. . · · [Ans.: Resident and Ordinarily Resii

n Jindal, an Indian citizen left for Egypt on 25th June, 2018 and did not return till the end 0 f th f .
2019-20. Determine his residential status for Assessment Year 2020-21. •.. e inanc,al

[Ans.: Non Res1

.'
 )
Vipur•,T11 Q
lrtq)
(TJ'"lT1" 'ff
~
,t';;l · ·
n on th March, 200 9 afte
r staying In lndla for over
12 years. He
o ..._,
,
Bos
cam
15 nt Year 2020-21.
36 Shrl Klshan Lal lofl for Germa, sldentlal status tor Assessme
,Y . 4
[An
-~,
s", N,on Re,k!t.. •
re stayed In India for Y
0 oetermlne 1 s
(3)
9111 Janua,Y, 202 · f u s A on 2-5-2013 for the first time. He o 1• Hl- 201 9 on which•;" "" .;;i
and stayei1 upl
b~~k io /ndla on 1-7 .20 19 . ay he ..,I
c•) Mr- At,raham Cam• to /ndla rom p/oymenl In Jndla and came lo De/hi on 25· 1·2020.
u.K. on 1.s-2017. He aga in c,a ;:m I
10 u.s.A. Ha accepted a sol
Determine his res/dent/al status
ar •
for
Ass ess me nt yea r 202 0-21. {An s.: Re sid ent
He has come during vacatio
and Ord
ns
l ti
on";t"'~
·
dies on 1st September 201 5.
rther stu
1~ch I/me he stayed µpto 31s l oecember.
"a.,;;
(S) a ,an went lo U.S.A. Jo; tor Assessment year 202 0-2
1?
0
.201 7, 2018 and 201 9 ~n e st
What would be his reside;&i:~a l a~rf
he had not com e to tndfa
ing
dur
201
ing 201 9 at all?
9-2 0 or if he doe sn't come
to India duni
R 19,;r,,
(13;

~
er~ nc If he com es to Ind ia dur -~ng20
would it have m~de ~ny
[Ans.: SituafJon. 1 2 .
,,.e.
el are as under:
, . f . I to and departure from India of Mr. Pat
Departure
va 2-7-2014
(6) The particulars o am
Arrival 31-5-2015
2-4-2013 28- 5-2 017
H-2 01 5 8-2 -20 18
1-5-2016 .
1-9-2017 10- 1-2 020 inarily Re kl..t
. ent an d Ord
[An s.: Re sid
29-11-201 B
Determine his residential status
ta
tor Assessment
ot a HU F wh ose
Yea r
pro
202
per
0-2
ty
1.
ls sJJuaJed in Singapore
.. He has never oom,
k 1o Ind ia They
1
'
ha:i,o:
(7) Muraril al Kris hna n is the K8r ily exc ept him cam e bac
. All the members o1 his Jam 2020·21?
during the year ended 31-3-2020 lde nlla l status of the _HUF for Ass ess me nt Ye ar [Ans.: Non Res
~
s. Wh al is the res·
resldontial house al Mad,a
orting gar~ents. Nlrari~i
rk, st~ rt a partners~ip _business of exp l~
(8) Shri Niran)an of India _ and Mr. Ped er~ on of ~en ma rge of sales. What 1s the res
arra ngi ng ship me nts , whde Pederson is ,n cha
in charge of purchasing . and {An.s.: s~
Re

status of the firm? owing data: ·

hak ar tor Ass ess me nt Ye ar 202 0-2 1 from the foll
tial ~tatus of Sud (14
(9) Determine the residen · India.
York, U.S.A. for last 20 years. permanent settlement in {An
(/) He was serving Ind In New
Jan uar y, 202 0 afte r lea ving the job , for s.: Noh Res~
(ii) He returned to ia on 1st ·
.. · Determine his total t aN3
inco me of Shr i Tus har for Assessment Year 202 0-2 1.
sources of · ax
(10) _The following ~re the
rna tive ly tha t he is: esi den t.
,noome assuming alte ident. (II) Not Ordinarily Reside
nt. (iii) Ndn-R
(/) Resident and Ordinarily Res Rs. 52 000
1

Salary from a comp~ny(Gross) in Ind/a. R 57 00 0

1

on 000
Income from profession carried t to Ind ia Rs . 3
d in U.K . and bro ugh '
Income accrue s.
Income from a businessled in Germany Rs. 81 ,00 0
ln,d la)
(The business is control from 0,000; NR - Rs. 1,09,IY.4
{:n_t·: RO A- Rs. 1,93,0 00; RN OR - Rs. 1,9
(11) !he following income is
earned by Mr Bos e e the scope of his total Inc~
res ide~ tial sta tu:. sse ssm ent Year 202 0-2 1. Determin
assuming each of the possible . . t by his brotts
ive d from a ban k in En lan
Mr d. The money ~a s deposi.ted ,n the ban k accoun
rece
rest and dividend eamed b~
(I) be,n the0~
A~. g10,0 inte 9
ear ned In Ind ia b'ut de . . ose l_n ".'menca. directly in the ban k in Switzerland.
000 sala ry his employer
(II) Rs. 20,
(Ill) As. 2,000 professiona
l fees earned and ieosi;ed by
r remitted to India.
om e from bus ine ss whi ch is ~e v~dd° N~w Y~rk but late led from Ne w York
f'v)) As. 15,000 (nc _ed on In ,n India but con trol ·
~
ss which i's carr Hong Ko ng b ut controlled from Ne w York
As. 10,000 income from busine
~
v ame on ·
[A
(12) Shri • - Rs. 57,000; RN OR Rs.
35,000; NR Rs. 35,~
Ne :~~ ;1. °R
In u .:~, s"~ s,";;: 'ec uU ve of
Ford Mo tors Inc. , In e, 201 2 for advanced slud/
~i~~~ea~ lefftlllndia on 1st Jun
i~
. Vis ited ,::1~t 31st Dec em ber
Left lndla on
, 201 5. Fur the r det
s o ows:
.J.;g;:
1
1
_•
30: 6-2016
30-6-2017
Oth er Information
was employed by Maruti Su
zuki Ltd .
.
h h .
30-6-2017 8 as Joined Fo rd Motors.
From atio n trip
Vac
.1-12-2017 27-1-2018
1-01-2019 25-1-2019 Business trip.
26- 1-2020 15- 2-2 020 • Business trip.
 ·1. £f,ij'"l'oJil• 37
Basis .·ofc 11arge .
. .
s an a cestra/ Pro
(a)
(b) H
H e
e
h
is
a
a
rt:
n
e r o f M is vts~7~
of
at Chen main
R a o . It
nat.
s
Sh rf us
.
m e
adras a
ss Is at M r) an~~t: bra_nch ess is In India.
fathe
Is In New
n busin
York

is a ~ = m e r o f HUF : h lc h Karta is ':;th (his Is only In u .: ! '.

( c ) H e as H U F of th e Kart~~ ln e s s
e h _ Is us
(d) H eparate h:~~ he ersons:.
e r e !/ s s o f the owing P
State th ash~entfal statu
V
(i) Shrl
rship firm
(i?Partne . e~h ) Non R
esident}
F With K hrl Gan ident, { Iv

~: ~~:~~f{t:;:~~=~t
(Iii) H U With K. arta S hri Vashi a rtty R es
(Iv) H U
F arta S sident
.. and Ordin
(I) Non Re

i: ;~~ /~~~a
. /A n s .:
, an In d I : i~ I fd
s : : ii d
S ~ r iC hoksey 11 170 day
s
. (13) v e a ls h~; nd in g 31-3-20 1 70 days
ssport
re Year e ing 3 1•3. 2012 110 day
s
H is pa d
Year en g 31.3•2013 y s
dln 3 9 d a
~ e a r,en ing 31.3. 2014 3 1 0 days
ear e nd
. • 196 da y
s
ding 3 1 3 2015
.Year en ing 1 •3. 2016 5 d a y s
d 3 12
Year en g 1 •3. 2017 7 days

;ff;1:::
n din 3 1 0
Year e ing 1 •3•2018
d 3
Year ending 1_3_2019 .
r e n 3 . abroad.
Ye a
-2 0 2 0 ia a ft e ;sewing
1st ~e~~
- 31 -~ to In d
ending ot come
3f.3:Jg;o
.
p r io r to he did n der. 00
. d that r ended eden o was a
s un Rs. 7,0 0
y b e a s~ume e y e a s ., 2 5 ,0 0
lt_ma g for th In Sw . R
l e a m m
f: ts to ta e from house s In s d
p ro p e rt y
f :: :i t: n tr
o ll e d fr
om Sw e de n
;g,ggg
: :·
(!! In c o m from busines _ o u n : n
f d from India ·
52 ooo
m e a c c tro ll e
(1/) In c o;e s_t ftom bank , m o s tly con in g a p o re R s. 2 0-21.
(!Ii) ln te ln :s s in _lndi~ bu~iness in S R s . s .'o o o ss m en t Year 2 0
/s 10(2A
)JJ
o fi ts o f a b ~ s ,n India domg from Sweden .
c o m e for Asse s o fpartners u ndia arE
(1v) Pr a firm t wholly o f his to
tal-in e hand ided .I
r e from ugh no tax in th re bpm in undiv nci~I year!
(v) S h a e d m a in ly tho India. o k s e y, scope exempt from o w e in fina
c o n tr o n received in tial status o f S fpartnership firm SA. His paren pt for 200 day~ days. Determin
ll hri C h is ts w h eac h e th ,
ns io n o f U rs exc e for 15 0
(vi) P e reside ,000 [S
hare en o
/s ·a citiz ring last 10 yea ia and stayed
in e th e N R; 40 i since 2003 on Resid
en
D e te r m [ A n s .: b a d In d ia d u
v is ite d In d
· [Ans.: N
u m ite
o t vis -20, he aga in
n In M L has n
a s bee 19
r . L who w s o f U SA. Mr. ncial y e a r 20
4 ) M it iz e n fi n a
(1 ow c 6. In -21 .
a ls o n a n d 2015·1 Y. 2020
0 1 4 - 1 5 ,;,f M r. L for A.
2 tu s
n ti a l s ta
r e s id e