Residential Status

Topic Title Session Topic & Subtopic Details

No.
1 Residential Status of Different Persons under the Act
Residential
 Relevance of Residential Status
Status  Identifying RS by applying Basic and Additional Conditions

2 Tax Incidence and Residential Status

 Types of Income – Indian and Foreign
 Connotations of Income – Received, Deemed to be received,
accrued, deemed to be accrued
 Tax Incidence based on Residential Status
3 • Identifying the type of income and accordingly the tax
incidence for different person based on residential status
Basics
Importance of Residential Status
Residential Status v/s Citizenship
 Different Taxable Entities
• Individual
• HUF
Separate set of rules for
• Firm /LLP
different taxable entities
• AOP/BOI
• Company
• Every other person
 Points to Ponder
Residential Status of Each Previous Year
Different Residential Status for different
assessment years
Different Residential Status for different
sources in same assessment year not
possible
Resident in more than one country at
the same time – Is it possible ?
Burden of Proof
 Residential Status of Individual

Ordinarily
Resident
Resident
Residential Status Not –ordinarily
(Individual) Resident
Non – Resident
 Residential Status of an Individual
• Basic Conditions to Test when an Individual is Resident in India

1. He is in India in the previous year for

At least one of the
a period of 182 days or more
two basic conditions
2. He is in India for a period of 60 days or should be satisfied
more during the previous year and 365 days to become a resident

or more during 4 years immediately preceding

the previous year
 Residential Status of an Individual
• Special Cases where condition 2 is not considered –
1. Indian citizen who leaves India during the P.Y. for
the purpose of employment outside India
OR Only 1st condition
of 182 days shall
as a member of the crew of an Indian ship
apply

2. An Indian citizen or a person of Indian origin who

comes to visit India during the P.Y.
 Residential Status of an Individual
• Additional conditions to test when an individual is ordinarily resident in India –
1. Has been a resident in 2 out of 10 P.Y.’s
immediately preceeding the relevant P.Y.
Both the additional
2. Has been in India for a period of 730 days
conditions should be
or more during 7 years immediately preceeding satisfied
the relevant previous year
 Residential Status of an Individual
• Non Resident –
Does not satisfy any of the basic conditions
Additional conditions are not relevant
 Points to Ponder
Whether the stay should be for a
continuous period?
Whether stay should be at the same
place ?
Day of entry and day of exit –
whether both to be counted ?
 Illustrations
A citizen of USA has been staying in India
since 1991. He leaves India on 16.7.2020 on a
visit to USA and returns on 4.1.2021.
Determine his residential status for the
previous year 2020-21.
Condition Test of Condition Working Result
(P.Y. 2020-21)
Condition Test of Condition Working Result
(P.Y. 2020-21)

Basic Condition 1. Stay for 182 days or more in 1. Stay in P.Y. = 194 days Satisfied
P.Y.
(A-30, M-31, J-30,J-16
Jan-28,F-28, M-31)

Condition Test of Condition Working Result
(P.Y. 2020-21)

Basic Condition 1. Stay for 182 days or more in
P.Y.
1st Basic Condition Satisfied
1. Stay in P.Y. = 194 days Satisfied
(A-30, M-31, J-30,J-16
Jan-28,F-28, M-31)

Resident for P.Y.2020-21
Condition Test of Condition Working Result
(P.Y. 2020-21)

Basic Condition 1. Stay for 182 days or more in
P.Y.
1st Basic Condition Satisfied
Additional Condition 1. Resident in atleast 2 years out
of 10 years preceding P.Y.
1. Stay in P.Y. = 194 days Satisfied
(A-30, M-31, J-30,J-16
Jan-28,F-28, M-31)

Resident for P.Y.2020-21
1. Has been in India since 1991 Satisfied
2. So satisfies 182 days
condition in all the years of
stay

3. Resident in all the years of
stay
Condition Test of Condition Working Result
(P.Y. 2020-21)

Basic Condition 1. Stay for 182 days or more in 1. Stay in P.Y. = 194 days Satisfied
P.Y.
(A-30, M-31, J-30,J-16
Jan-28,F-28, M-31)

1st Basic Condition Satisfied Resident for P.Y.2020-21
Additional Condition 1. Resident in atleast 2 years out 1. Has been in India since 1991 Satisfied
of 10 years preceding P.Y. 2. So satisfies 182 days
condition in all the years of
stay

3. Resident in all the years of
stay
2. Stay for 730 days or more in 7 1. Has been in India since 1991 Satisfied
preceeding P.Y. 2. Stay for preceeding 7 years
=365*7= 2,555 days 
Condition Test of Condition Working Result
(P.Y. 2020-21)

Basic Condition 1. Stay for 182 days or more in 1. Stay in P.Y. = 194 days Satisfied
P.Y.
(A-30, M-31, J-30,J-16
Jan-28,F-28, M-31)

1st Basic Condition Satisfied Resident for P.Y.2020-21
Additional Condition 1. Resident in atleast 2 years out 1. Has been in India since 1991 Satisfied
of 10 years preceding P.Y. 2. So satisfies 182 days
condition in all the years of
stay

3. Resident in all the years of
stay
2. Stay for 730 days or more in 7 1. Has been in India since 1991 Satisfied
preceeding P.Y. 2. Stay for preceeding 7 years
=365*7= 2,555 days 
Both the additional conditions are Resident and
satisfied Ordinarily Resident for
P.Y. 2020-21
 Illustrations
Indian citizen and businessman Shri Raj Gopal, who
resides in Jaipur, went to Germany for purposes of
employment on 15.8.2020 and came back to India on
10.11.2021. He has never been out of India in the past.
A) Determine residential status of Shri Raj Gopal for
the assessment year 2021-22.
B) Will your answer be different if he had gone on a
leisure trip?
Condition Test of Condition Working Result
(Situation A) P.Y.2020-21
Basic Condition 1. Stay for 182 days or more 1. Stay in P.Y. = 137 days Not Satisfied
in P.Y.
(A-30, M-31, J-30,J-31,
A-15) 
1st Basic Condition is not Non Resident for
Satisfied.* P.Y. 2020-21

*We will not check the Basic Condition 2 because it falls in the exception category:
• Indian citizen who leaves India during the P.Y. for the purpose of employment
outside India (only 182 days criteria will apply)
Condition Test of Condition Working Result
(Situation B) P.Y.2020-21
Basic Condition 1. Stay for 182 days or more 1. Stay in P.Y. = 137 days Not Satisfied
in P.Y.
(A-30, M-31, J-30,J-31, 
A-15)
Condition Test of Condition Working Result
(Situation B) P.Y.2020-21
Basic Condition 1. Stay for 182 days or more 1. Stay in P.Y. = 137 days Not Satisfied
in P.Y.
(A-30, M-31, J-30,J-31, 
A-15)
2. Stay for 60 days or more 1. Stay in P.Y. = 137 days Satisfied
during P.Y. and (A-30, M-31, J-30,J-31,
365 Days or more in 4 A-15)
preceding P.Y. 1. He has never been 
outside India before P.Y.
2020-21
2. So satisfies 365 days
condition in 4 preceding
P.Y.
2nd Basic Condition Resident for P.Y.
Satisfied 2020-21
Condition Test of Condition Working Result
(Situation B) P.Y. 2020-21
Additional 1. Resident in atleast 2 years 1. He had not been outside Satisfied
Condition out of 10 years preceeding India before P.Y. 2020-21
P.Y. 2. So satisfies 1st Basic 
condition of 182 days in
all preceeding years
3. Resident in all the
preceeding years of stay
Condition Test of Condition Working Result
(Situation B) P.Y. 2020-20
Additional 1. Resident in atleast 2 years 1. He had not been outside Satisfied
Condition out of 10 years preceeding India before P.Y. 2020-21
P.Y. 2. So satisfies 1st Basic 
condition of 182 days in
all preceeding years
3. Resident in all the
preceeding years of stay
2. Stay for 730 days or more 1. He has never been outside Satisfied
in 7 preceeding P.Y. India before P.Y. 2020-21

2. Stay for preceeding 7 years
=365*7= 2,555 days

Both the additional Resident and

conditions are satisfied Ordinarily
Resident for P.Y.
2020-21
 Illustrations
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, 2020 for joining his duties in
Nigeria. During the previous year 2021-22, he comes to
India for 176 days. Determine the residential status of X
for the assessment years 2021-22 and 2022-23.
Condition Test of Condition Working Result
P.Y. 2020-21

Basic Condition 1. Stay for 182 days or more 1. Stay in P.Y. = 179 days Not Satisfied
in P.Y.
(A-30, M-31, J-30,J-31,
A-31,S-26) 
1st Basic Condition is not Non Resident for
Satisfied* P.Y. 2020-21

*We will not check the Basic Condition 2 because it falls in the exception category:
• Indian citizen who leaves India during the P.Y. for the purpose of employment
outside India (only 182 days criteria will apply)
Condition Test of Condition Working Result
P.Y. 2020-21

Basic Condition 1. Stay for 182 days or more 1. Stay in P.Y. = 176 days Not Satisfied
in P.Y.

1st Basic Condition is not Non Resident for
Satisfied.* P.Y. 2021-22

*We will not check the Basic Condition 2 because it falls in the exception category:
• Indian citizen or Person of Indian Origin who comes to visit India during the
P.Y. (only 182 days criteria will apply)
 Illustrations
‘G’ was born in Lahore in 1946. He has been staying in
England since 1972. He came to visit India on 3.10.2020
and returns on 31.3.2021. Determine his residential status
for the assessment year 2021-22.
Condition Test of Condition Working Result
P.Y. 2020-21

Basic Condition 1. Stay for 182 days or more 1. Stay in P.Y. = 180 days Not Satisfied
in P.Y.
(O-29,N-30,D-31,J-31,F- 
28,M-31)

1st Basic Condition is not Non Resident for

Satisfied* P.Y. 2020-21

*We will not check the Basic Condition 2 because it falls in the exception category:
• Indian citizen or Person of Indian Origin who comes to visit India during the
P.Y. (only 182 days criteria will apply)
 Illustrations
• ‘Rickey Ponting, an Australian cricketer has been coming
to India for 100 days every year since 2008-09;
• Determine his residential status for the assessment year
2021-22.
• Will your answer be different if he has been coming to
India for 110 days instead of 100 days every year?
Condition Test of Condition Working Result
(Situation A) P.Y. 2020-21
Basic Condition 1. Stay for 182 days or more in P.Y. 1. Stay in P.Y. = 100 days Not Satisfied 
Condition Test of Condition Working Result
(Situation A) P.Y. 2020-21
Basic Condition 1. Stay for 182 days or more in P.Y. 1. Stay in P.Y. = 100 days Not Satisfied 
2. Stay for 60 days or more during 1. Stay in P.Y. = 100 days Satisfied.
P.Y. and 365 Days or more in 4 2. Stays 400 days in 4 preceding
preceding P.Y. P.Y. 
3. So satisfies 365 days condition
in 4 preceding P.Y.
2nd Basic Condition is Satisfied Resident for P.Y. 2020-21
Condition Test of Condition Working Result
(Situation A) P.Y. 2020-21
Basic Condition 1. Stay for 182 days or more in P.Y. 1. Stay in P.Y. = 100 days Not Satisfied 
2. Stay for 60 days or more during 1. Stay in P.Y. = 100 days Satisfied.
P.Y. and 365 Days or more in 4 2. Stays 400 days in 4 preceding
preceding P.Y. P.Y. 
3. So satisfies 365 days condition
in 4 preceding P.Y.
2nd Basic Condition is Satisfied Resident for P.Y. 2020-21
Additional 1. Resident in atleast 2 out of 10 1. Stay of 100 days in each P.Y. Satisfied
Condition preceeding P.Y. since 2008-09.
2. So as per basic condition 2, 
resident in atleast 2 out of 10
preceding P.Y.
Condition Test of Condition Working Result
(Situation A) P.Y. 2020-21
Basic Condition 1. Stay for 182 days or more in P.Y. 1. Stay in P.Y. = 100 days Not Satisfied 
2. Stay for 60 days or more during 1. Stay in P.Y. = 100 days Satisfied.
P.Y. and 365 Days or more in 4 2. Stays 400 days in 4 preceding
preceding P.Y. P.Y. 
3. So satisfies 365 days condition
in 4 preceding P.Y.
2nd Basic Condition is Satisfied Resident for P.Y. 2020-21
Additional 1. Resident in atleast 2 out of 10 1. Stay of 100 days in each P.Y. Satisfied
Condition preceeding P.Y. since 2008-09.
2. So as per basic condition 2, 
resident in atleast 2 out of 10
preceding P.Y.
2. Stay for 730 days or more in 7 1. Stays 100 days so 7*100=700 Not Satisfied
preceeding P.Y. 2. Not satisfies 730 days 
condition in 7 preceding P.Y.
Both the additional conditions are Resident But Not
not satisfied Ordinarily Resident for
P.Y. 2020-21
Condition Test of Condition Working Result
(Situation B) P.Y. 2020-21
Basic Condition 1. Stay for 182 days or more in P.Y. 1. Stay in P.Y. = 110 days Not Satisfied 
2. Stay for 60 days or more during 1. Stay in P.Y. = 110 days Satisfied.
P.Y. and 365 Days or more in 4 2. Stays 440 days in 4 preceding
preceding P.Y. P.Y. 
3. So satisfies 365 days condition
in 4 preceding P.Y.
2nd Basic Condition is Satisfied Resident for P.Y. 2020-21
Condition Test of Condition Working Result
(Situation B) P.Y. 2020-21
Basic Condition 1. Stay for 182 days or more in P.Y. 1. Stay in P.Y. = 110 days Not Satisfied 
2. Stay for 60 days or more during 1. Stay in P.Y. = 110 days Satisfied.
P.Y. and 365 Days or more in 4 2. Stays 440 days in 4 preceding
preceding P.Y. P.Y. 
3. So satisfies 365 days condition
in 4 preceding P.Y.
2nd Basic Condition is Satisfied Resident for P.Y. 2020-21

Additional 1. Resident in atleast 2 out of 10 1. Stay of 110 days in each P.Y. Satisfied
Condition preceeding P.Y. since 2008-09.
2. So as per basic condition 2, 
resident in atleast 2 out of 10
preceding P.Y.
Condition Test of Condition Working Result
(Situation B) P.Y. 2020-21
Basic Condition 1. Stay for 182 days or more in P.Y. 1. Stay in P.Y. = 110 days Not Satisfied 
2. Stay for 60 days or more during 1. Stay in P.Y. = 110 days Satisfied.
P.Y. and 365 Days or more in 4 2. Stays 440 days in 4 preceding
preceding P.Y. P.Y. 
3. So satisfies 365 days condition
in 4 preceding P.Y.
2nd Basic Condition is Satisfied Resident for P.Y. 2020-21

Additional 1. Resident in atleast 2 out of 10 1. Stay of 110 days in each P.Y. Satisfied
Condition preceeding P.Y. since 2008-09.
2. So as per basic condition 2, 
resident in atleast 2 out of 10
preceding P.Y.
2. Stay for 730 days or more in 7 1. Stays 110 days so 7*110=770 Satisfied
preceeding P.Y. 2. Satisfies 730 days condition
in 7 preceding P.Y. 
Both the additional conditions are Resident & Ordinarily
satisfied Resident for P.Y. 2020-21
 Illustration

• Arham who works as a Finance Controller of Zydus Ltd.

was deputed to work at the company’s office in U.K. on
26.09.2020 for a period of 2 years. He claims that he is a
non-resident for the A.Y. 2021-22. Is his claim valid?
Discuss
Condition Test of Condition Working Result
P.Y. 2020-21

Basic Condition 1. Stay for 182 days or more 1. Stay in P.Y. = 179 days Not Satisfied
in P.Y.
(A-30, M-31, J-30,J-31, A-
31,S-26) 
1st Basic Condition is not Non Resident for
Satisfied* P.Y. 2020-21

*We will not check the Basic Condition 2 because it falls in the exception category:
• Indian citizen who leaves India during the P.Y. for the purpose of employment
outside India (only 182 days criteria will apply)
Residential Status
And Incidence Of Tax
Taxable
Income

Residential
Status

Nature of
income
Residential Status
And Incidence Of Tax
Nature of
Income
Indian
Income
Foreign
Income
 Residential Status and Tax Incidence
Individual
Resident and Resident but not Non – Resident
Ordinarily ordinarily in India (NR)
Resident in resident in
India (ROR) India(RBNOR)
Indian Income Taxable in India Taxable in India Taxable in India
Foreign Income Taxable in India Not taxable in Not taxable in
India (* Exception) India

*Exception : Foreign Business Income /Foreign Professional Income

 Indian Income

• Taxable irrespective of
residential status and place of
accrual
Received • Receipt means first occasion
In India when recipient gets the money
under control.
• Any Transmission or
Remittance to another place
does not result in receipt.
 Indian Income

• Will be taxable irrespective of

Deemed actual receipt
to be • Contribution made by employer to
Recognised Provident Fund (RPF)
received
in India
 Indian Income

Accruing • Income is said to accrue

when it becomes
or due/earned
• Income once taxed on
arising in accrual basis cannot be
taxed again on receipt
India basis
 Indian Income

Deemed • Income from business

connection in India
to accrue • Income arises outside
/arise in India due to business
connection in India
India (1)
 Indian Income

• Maintaining a branch office in India

for purchase and sale of goods
• Appointing an agent in India for
Business purchase /sale of goods
Connection • Erecting a factory in India where RM
purchased locally is worked (half
processed) on and exported
• Forming subsidiary co. to sell the
product of non-resident parent co.
 Indian Income

Deemed • Income from any

to accrue property , asset
or source of
/arise in income in India
India (2)
 Indian Income
Deemed to • Income from the transfer
accrue /arise in of any capital asset in
India (3) India (Capital Gains)

Deemed to • Salary income for services

accrue /arise in rendered in India
India (4)
 Indian Income
Deemed to • Salary payable abroad by
accrue /arise in the Government to a
India (5) citizen of India

Deemed to • Dividend paid by an Indian

accrue /arise in company
India (6)
 Indian Income

Deemed • Interest, Royalty or technical fees received

from Central/ State Government

to accrue • Interest, Royalty or technical fees received

from Indian Resident except it pertains to
any business or profession carried outside

/arise in india and earned outside india.

• Interest, Royalty or technical fees received

India (7)
from Non Resident if it is utilised for any
business or profession carried in india and
earned in india.
 Indian Income

Deemed • Income by way of gift of money to a non

resident / foreign company.

to accrue • Conditions:
• 1) Payer is resident in India
• 2) Recipient is Non Resident / Foreign

/arise in Company
• 3) Received after 05.07.2019 by Non Resident
/ Foreign Co.

India (8) • Indian Income even if it is received

outside india
 Residential Status and Tax Incidence
Income Income deemed Income Income Status of
received to be received accrues in deemed to Income
in India in India India accrue in
India
Yes Yes Yes Yes Indian
Income
Yes Yes No No Indian
Income
No No Yes Yes Indian
Income
No No No No Foreign
Income
 Residential Status and Tax Incidence
Individual
Resident and Resident but not Non – Resident
Ordinarily ordinarily in India (NR)
Resident in resident in
India (ROR) India(RBNOR)
Indian Income Taxable in India Taxable in India Taxable in India
Foreign Income Taxable in India Not taxable in Not taxable in
India/ Taxable* India

*Exception : Business Income if business is controlled wholly/ partly

in India and Professional Income if profession set up in India
ILLUSTRATIONS
The following is the income of Shri Sudhir Kumar for the previous year 2020-21
• Profits from business in Iran received in India. 5,00,000
• Income from house property in Iran received in India. 1,20,000
• Income from house property in Sri Lanka deposited in a bank there. 1,80,000
• Profits of business established in Sri Lanka deposited in a bank there, 2,00,000
this business is controlled in India (out of Rs 2,00,000 a sum
of Rs 1,00,000 is remitted in India).
• Income from profession in India but received in England 2,40,000
• Profits earned from business in Kanpur. 1,60,000
• Income from agriculture in England, it is all spent on the education of
children in London. 2,70,000
Ascertain the taxable income of Shri Sudhir Kumar, if Shri Sudhir Kumar is
• A resident and ordinarily resident , A resident but not ordinarily resident, A non-resident
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Profits from business in Iran received in India Indian 5,00,000 5,00,000 5,00,000
Income from house property in Iran received in India
Income from house property in Sri Lanka deposited
in a bank there
Profits of business established in Sri Lanka
deposited in a bank there, this business is controlled
in India (out of Rs 2,00,000 a sum of Rs 1,00,000 is
remitted in India).
Income from profession in India but received in
England

Profits earned from business in Kanpur

Income from agriculture in England, it is all spent on

the education of children in London
Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Profits from business in Iran received in India Indian 5,00,000 5,00,000 5,00,000
Income from house property in Iran received in India Indian 1,20,000 1,20,000 1,20,000
Income from house property in Sri Lanka deposited
in a bank there
Profits of business established in Sri Lanka
deposited in a bank there, this business is controlled
in India (out of Rs 2,00,000 a sum of Rs 1,00,000 is
remitted in India).
Income from profession in India but received in
England

Profits earned from business in Kanpur

Income from agriculture in England, it is all spent on

the education of children in London
Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Profits from business in Iran received in India Indian 5,00,000 5,00,000 5,00,000
Income from house property in Iran received in India Indian 1,20,000 1,20,000 1,20,000
Income from house property in Sri Lanka deposited Foreign 1,80,000 NIL NIL
in a bank there
Profits of business established in Sri Lanka
deposited in a bank there, this business is controlled
in India (out of Rs 2,00,000 a sum of Rs 1,00,000 is
remitted in India).
Income from profession in India but received in
England

Profits earned from business in Kanpur

Income from agriculture in England, it is all spent on

the education of children in London
Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Profits from business in Iran received in India Indian 5,00,000 5,00,000 5,00,000
Income from house property in Iran received in India Indian 1,20,000 1,20,000 1,20,000
Income from house property in Sri Lanka deposited Foreign 1,80,000 NIL NIL
in a bank there
Profits of business established in Sri Lanka Foreign 2,00,000 2,00,000 NIL
deposited in a bank there, this business is controlled (Exception)
in India (out of Rs 2,00,000 a sum of Rs 1,00,000 is
remitted in India).
Income from profession in India but received in
England

Profits earned from business in Kanpur

Income from agriculture in England, it is all spent on

the education of children in London
Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Profits from business in Iran received in India Indian 5,00,000 5,00,000 5,00,000
Income from house property in Iran received in India Indian 1,20,000 1,20,000 1,20,000
Income from house property in Sri Lanka deposited Foreign 1,80,000 NIL NIL
in a bank there
Profits of business established in Sri Lanka Foreign 2,00,000 2,00,000 NIL
deposited in a bank there, this business is controlled (Exception)
in India (out of Rs 2,00,000 a sum of Rs 1,00,000 is
remitted in India).
Income from profession in India but received in Indian 2,40,000 2,40,000 2,40,000
England

Profits earned from business in Kanpur

Income from agriculture in England, it is all spent on

the education of children in London
Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Profits from business in Iran received in India Indian 5,00,000 5,00,000 5,00,000
Income from house property in Iran received in India Indian 1,20,000 1,20,000 1,20,000
Income from house property in Sri Lanka deposited Foreign 1,80,000 NIL NIL
in a bank there
Profits of business established in Sri Lanka Foreign 2,00,000 2,00,000 NIL
deposited in a bank there, this business is controlled (Exception)
in India (out of Rs 2,00,000 a sum of Rs 1,00,000 is
remitted in India).
Income from profession in India but received in Indian 2,40,000 2,40,000 2,40,000
England

Profits earned from business in Kanpur Indian 1,60,000 1,60,000 1,60,000

Income from agriculture in England, it is all spent on

the education of children in London
Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Profits from business in Iran received in India Indian 5,00,000 5,00,000 5,00,000
Income from house property in Iran received in India Indian 1,20,000 1,20,000 1,20,000
Income from house property in Sri Lanka deposited Foreign 1,80,000 NIL NIL
in a bank there
Profits of business established in Sri Lanka Foreign 2,00,000 2,00,000 NIL
deposited in a bank there, this business is controlled (Exception)
in India (out of Rs 2,00,000 a sum of Rs 1,00,000 is
remitted in India).
Income from profession in India but received in Indian 2,40,000 2,40,000 2,40,000
England

Profits earned from business in Kanpur Indian 1,60,000 1,60,000 1,60,000

Income from agriculture in England, it is all spent on Foreign 2,70,000 NIL NIL
the education of children in London
Total 16,70,000 12,20,000 10,20,000
X furnishes the following particulars of his income earned during the previous year relevant to the
assessment year 2021-22:
• Interest on German development Bonds (two-fifths received in India) 60,000

• Income from agriculture in Bangladesh, received there but later

on Rs 50,000 is remitted to India 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 10,2020 46,500
• Past untaxed profit of 2017-18 brought to India in 2020-21 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

• Resident and ordinarily resident in India
• Resident but not ordinarily resident India
• Non-resident in India for the assessment year 2020-21
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Interest on German development Bonds (two-fifths Indian (2/5) 24,000 24,000 24,000
received in India) Foreign 36,000
(3/5)
Income from agriculture in Bangladesh, received
there but later on Rs 50,000 is remitted to India
( agricultural activity is controlled from Bangladesh)

Income from property in Canada received outside

India [Rs. 76,000 is used in Canada for meeting
educational expenses of X’s daughter and Rs 10,000
is later on remitted to India]

Income earned from business in Kampala(Uganda)

which is controlled from Delhi (Rs 15,000 is
received in India)

Dividend paid by a foreign company but received in

India on April 10,2019
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Interest on German development Bonds (two-fifths Indian (2/5) 60,000 24,000 24,000
received in India) Foreign
(3/5)
Income from agriculture in Bangladesh, received Foreign 1,81,000 NIL NIL
there but later on Rs 50,000 is remitted to India
( agricultural activity is controlled from Bangladesh)

Income from property in Canada received outside

India [Rs. 76,000 is used in Canada for meeting
educational expenses of X’s daughter and Rs 10,000
is later on remitted to India]

Income earned from business in Kampala(Uganda)

which is controlled from Delhi (Rs 15,000 is
received in India)

Dividend paid by a foreign company but received in

India on April 10,2019
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Interest on German development Bonds (two-fifths Indian (2/5) 60,000 24,000 24,000
received in India) Foreign
(3/5)
Income from agriculture in Bangladesh, received Foreign 1,81,000 NIL NIL
there but later on Rs 50,000 is remitted to India
( agricultural activity is controlled from Bangladesh)

Income from property in Canada received outside Foreign 86,000 NIL NIL
India [Rs. 76,000 is used in Canada for meeting
educational expenses of X’s daughter and Rs 10,000
is later on remitted to India]

Income earned from business in Kampala(Uganda)

which is controlled from Delhi (Rs 15,000 is
received in India)

Dividend paid by a foreign company but received in

India on April 10,2019
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Interest on German development Bonds (two-fifths Indian (2/5) 60,000 24,000 24,000
received in India) Foreign
(3/5)
Income from agriculture in Bangladesh, received Foreign 1,81,000 NIL NIL
there but later on Rs 50,000 is remitted to India
( agricultural activity is controlled from Bangladesh)

Income from property in Canada received outside Foreign 86,000 NIL NIL
India [Rs. 76,000 is used in Canada for meeting
educational expenses of X’s daughter and Rs 10,000
is later on remitted to India]

Income earned from business in Kampala(Uganda) Indian 65,000 65,000 15,000

which is controlled from Delhi (Rs 15,000 is Foreign (15,000+ (15,000+
received in India) (Exception) 50,000) 50,000)

Dividend paid by a foreign company but received in

India on April 10,2019
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Interest on German development Bonds (two-fifths Indian (2/5) 60,000 24,000 24,000
received in India) Foreign
(3/5)
Income from agriculture in Bangladesh, received Foreign 1,81,000 NIL NIL
there but later on Rs 50,000 is remitted to India
( agricultural activity is controlled from Bangladesh)

Income from property in Canada received outside Foreign 86,000 NIL NIL
India [Rs. 76,000 is used in Canada for meeting
educational expenses of X’s daughter and Rs 10,000
is later on remitted to India]

Income earned from business in Kampala(Uganda) Indian 65,000 65,000 15,000

which is controlled from Delhi (Rs 15,000 is Foreign (15,000+ (15,000+
received in India) (Exception) 50,000) 50,000)

Dividend paid by a foreign company but received in Indian 46,500 46,500 46,500
India on April 10,2019
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Past untaxed profit of 2017-18 brought to India in (Not of NA NA NA
2020-21 P.Y.)

Profits from a business in Chennai and managed

from outside India

Profits on sale of a building in India but received in

Sri Lanka

Pension from a former employer in India, received

in Rangoon

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Past untaxed profit of 2017-18 brought to India in (Not of NA NA NA
2020-21 P.Y.)

Profits from a business in Chennai and managed Indian 27,000 27,000 27,000
from outside India

Profits on sale of a building in India but received in

Sri Lanka

Pension from a former employer in India, received

in Rangoon

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Past untaxed profit of 2017-18 brought to India in (Not of NA NA NA
2020-21 P.Y.)

Profits from a business in Chennai and managed Indian 27,000 27,000 27,000
from outside India

Profits on sale of a building in India but received in Indian 14,80,000 14,80,000 14,80,000
Sri Lanka

Pension from a former employer in India, received

in Rangoon

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Past untaxed profit of 2017-18 brought to India in (Not of NA NA NA
2020-21 P.Y.)

Profits from a business in Chennai and managed Indian 27,000 27,000 27,000
from outside India

Profits on sale of a building in India but received in Indian 14,80,000 14,80,000 14,80,000
Sri Lanka

Pension from a former employer in India, received Indian 36,000 36,000 36,000
in Rangoon

Total
X earns the following income during the financial year 2020-21:
• Interest from an Indian company received in London. 1,20,000
• Pension from former employer in India received in USA. 1,80,000
• Profits earned from a business in Paris which is controlled in India, half
of the profits being received in India. 2,00,000
• Income from agriculture in Bhutan and remitted to India. 1,25,000
• Income from property in England received there. 4,00,000
• Past foreign income brought to India. 10,000

Compute his income for the assessment year 2021-22 if he is:

• Resident and ordinarily resident in India
• Not ordinarily resident in India
• Non-resident in India
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Interest from an Indian company received in London Indian 1,20,000 1,20,000 1,20,000

Pension from former employer in India received in

USA

Profits earned from a business in Paris which is

controlled in India, half of the profits being received
in India.
Income from agriculture in Bhutan and remitted to
India

Income from property in England received there

Past foreign income brought to India

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Interest from an Indian company received in London Indian 1,20,000 1,20,000 1,20,000

Pension from former employer in India received in Indian 1,80,000 1,80,000 1,80,000
USA

Profits earned from a business in Paris which is

controlled in India, half of the profits being received
in India.
Income from agriculture in Bhutan and remitted to
India

Income from property in England received there

Past foreign income brought to India

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Interest from an Indian company received in London Indian 1,20,000 1,20,000 1,20,000

Pension from former employer in India received in Indian 1,80,000 1,80,000 1,80,000
USA

Profits earned from a business in Paris which is Indian 2,00,0000 2,00,000 1,00,000
controlled in India, half of the profits being received Foreign (1,00,000+ (1,00,000+
in India. (Exception) 1,00,000) 1,00,000)
Income from agriculture in Bhutan and remitted to
India

Income from property in England received there

Past foreign income brought to India

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Interest from an Indian company received in London Indian 1,20,000 1,20,000 1,20,000

Pension from former employer in India received in Indian 1,80,000 1,80,000 1,80,000
USA

Profits earned from a business in Paris which is Indian 2,00,0000 2,00,000 1,00,000
controlled in India, half of the profits being received Foreign (1,00,000+ (1,00,000+
in India. (Exception) 1,00,000) 1,00,000)
Income from agriculture in Bhutan and remitted to Foreign 1,25,000 Nil NIL
India

Income from property in England received there

Past foreign income brought to India

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Interest from an Indian company received in London Indian 1,20,000 1,20,000 1,20,000

Pension from former employer in India received in Indian 1,80,000 1,80,000 1,80,000
USA

Profits earned from a business in Paris which is Indian 2,00,0000 2,00,000 1,00,000
controlled in India, half of the profits being received Foreign (1,00,000+ (1,00,000+
in India. (Exception) 1,00,000) 1,00,000)
Income from agriculture in Bhutan and remitted to Foreign 1,25,000 Nil NIL
India

Income from property in England received there Foreign 4,00,000 Nil NIL

Past foreign income brought to India

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Interest from an Indian company received in London Indian 1,20,000 1,20,000 1,20,000

Pension from former employer in India received in Indian 1,80,000 1,80,000 1,80,000
USA

Profits earned from a business in Paris which is Indian 2,00,0000 2,00,000 1,00,000
controlled in India, half of the profits being received Foreign (1,00,000+ (1,00,000+
in India. (Exception) 1,00,000) 1,00,000)
Income from agriculture in Bhutan and remitted to Foreign 1,25,000 Nil NIL
India

Income from property in England received there Foreign 4,00,000 Nil NIL

Past foreign income brought to India Foreign NA NA NA

(Not of P.Y.)

Total 10,25,000 5,00,000 4,00,000

Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Interest from an Indian company received in London Indian 1,20,000 1,20,000 1,20,000

Pension from former employer in India received in Indian 1,80,000 1,80,000 1,80,000
USA

Profits earned from a business in Paris which is Indian 2,00,0000 2,00,000 1,00,000
controlled in India, half of the profits being received Foreign (1,00,000+ (1,00,000+
in India. (Exception) 1,00,000) 1,00,000)
Income from agriculture in Bhutan and remitted to Foreign 1,25,000 Nil NIL
India

Income from property in England received there Foreign 4,00,000 Nil NIL

Past foreign income brought to India Foreign NA NA NA

(Not of P.Y.)

Gift received from resident after 05/07/2019 Indian 1,20,000 1,20,000 1,20,000
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Interest from an Indian company received in London Indian 1,20,000 1,20,000 1,20,000

Pension from former employer in India received in Indian 1,80,000 1,80,000 1,80,000
USA

Profits earned from a business in Paris which is Indian 2,00,0000 2,00,000 1,00,000
controlled in India, half of the profits being received Foreign (1,00,000+ (1,00,000+
in India. (Exception) 1,00,000) 1,00,000)
Income from agriculture in Bhutan and remitted to Foreign 1,25,000 Nil NIL
India

Income from property in England received there Foreign 4,00,000 Nil NIL

Past foreign income brought to India Foreign NA NA NA

(Not of P.Y.)

Gift received from resident before 05/07/2019 Foreign 1,20,000 NA NA

For the assessment year 2021-22, X is a non-resident in India. From the information given below, find out
his income chargeable to tax for the assessment year 2021-22:

• Royalty received by him outside India from the

Government of India 8,17,000
• 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
• 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
• Income from a business connection in India (it is received outside India) 3,17,000
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Royalty received by him outside India from the Indian 8,17,000 8,17,000 8,17,000
Government of India

Technical fees received from A Ltd.(an Indian

company) in Germany for advise given by him in
respect of a project situated in Iran
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)
Income from a business connection in India (it is
received outside India)

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Royalty received by him outside India from the Indian 8,17,000 8,17,000 8,17,000
Government of India

Technical fees received from A Ltd.(an Indian Foreign 1,17,000 NIL NIL
company) in Germany for advise given by him in
respect of a project situated in Iran
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)
Income from a business connection in India (it is
received outside India)

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Royalty received by him outside India from the Indian 8,17,000 8,17,000 8,17,000
Government of India

Technical fees received from A Ltd.(an Indian Foreign 1,17,000 NIL NIL
company) in Germany for advise given by him in
respect of a project situated in Iran
Income from a business situated in Sri Lanka (goods Foreign 2,17,000 2,17,000 NIL
are sold in Sri Lanka , sale consideration is received (Exception)
in Sri Lanka but business is controlled partly in Sri
Lanka and partly in India)
Income from a business connection in India (it is
received outside India)

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Royalty received by him outside India from the Indian 8,17,000 8,17,000 8,17,000
Government of India

Technical fees received from A Ltd.(an Indian Foreign 1,17,000 NIL NIL
company) in Germany for advise given by him in
respect of a project situated in Iran
Income from a business situated in Sri Lanka (goods Foreign 2,17,000 2,17,000 NIL
are sold in Sri Lanka , sale consideration is received (Exception)
in Sri Lanka but business is controlled partly in Sri
Lanka and partly in India)
Income from a business connection in India (it is Indian 3,17,000 3,17,000 3,17,000
received outside India)

Total 14,68,000 13,51,000 11,34,000

Sai Eng co, A Singapore based co. and non- resident under IT Act has the following
income by way of royalty, advise the taxability of these incomes in India.
• Govt. of India paid Rs. 10,00,000 under approved agreement.
• Chennai based co. paid Rs. 12,00,000 for import of drawing and designs for use in
the project being excluded in Malasia.
• A South Koran Co. paid Rs. 5,00,000 for use of know-how in South Korea and Rs.
750000 for the formula used in India.

Compute the total income for the assessment year 2020-21, if he is:
Non-Resident
Income Type of income Non-resident
in India

Govt. of India paid Rs. 10,00,000 under approved agreement Indian 10,00,000

Chennai based co. paid Rs. 12,00,000 for import of drawing Foreign Nil
and designs for use in the project being excluded in Malasia.

A South Koran Co. paid Rs. 5,00,000 for use of know-how in Indian 7,50,000
South Korea and Rs. 7,50,000 for the formula used in India.

Total 17,50,000
During the financial year 2021-22 Anil Kumar had the following income:
• Salary income received in India for services rendered in Hong Kong 3,90,000
• Income from profession in India, but received in Germany. 3,60,000
• Property income in Uganda (out of which Rs 2,40,000 was remitted to
India. 5,00,000
• Profits earned from business in Bangalore. 1,50,000
• Agricultural income in Kenya. 1,60,000
• Profits from a business carried on at Nepal but controlled from India. 2,20,000
Compute the income of Anil Kumar for the assessment year 2020-21 if he is
i. Resident and ordinarily resident
ii. Resident and Not ordinarily resident
iii. Non-resident in India.
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Salary income received in India for services Indian 3,90,000 3,90,000 3,90,000
rendered in Hong Kong

Income from profession in India, but received in

Germany

Property income in Uganda (out of which Rs

2,40,000 was remitted to India)
Profits earned from business in Bangalore

Agricultural income in Kenya

Profits from a business carried on at Nepal but

controlled from India

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Salary income received in India for services Indian 3,90,000 3,90,000 3,90,000
rendered in Hong Kong

Income from profession in India, but received in Indian 3,60,000 3,60,000 3,60,000
Germany

Property income in Uganda (out of which Rs

2,40,000 was remitted to India)
Profits earned from business in Bangalore

Agricultural income in Kenya

Profits from a business carried on at Nepal but

controlled from India

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Salary income received in India for services Indian 3,90,000 3,90,000 3,90,000
rendered in Hong Kong

Income from profession in India, but received in Indian 3,60,000 3,60,000 3,60,000
Germany

Property income in Uganda (out of which Rs Foreign 5,00,000 NIL NIL

2,40,000 was remitted to India)
Profits earned from business in Bangalore

Agricultural income in Kenya

Profits from a business carried on at Nepal but

controlled from India

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Salary income received in India for services Indian 3,90,000 3,90,000 3,90,000
rendered in Hong Kong

Income from profession in India, but received in Indian 3,60,000 3,60,000 3,60,000
Germany

Property income in Uganda (out of which Rs Foreign 5,00,000 NIL NIL

2,40,000 was remitted to India)
Profits earned from business in Bangalore Indian 1,50,000 1,50,000 1,50,000

Agricultural income in Kenya

Profits from a business carried on at Nepal but

controlled from India

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Salary income received in India for services Indian 3,90,000 3,90,000 3,90,000
rendered in Hong Kong

Income from profession in India, but received in Indian 3,60,000 3,60,000 3,60,000
Germany

Property income in Uganda (out of which Rs Foreign 5,00,000 NIL NIL

2,40,000 was remitted to India)
Profits earned from business in Bangalore Indian 1,50,000 1,50,000 1,50,000

Agricultural income in Kenya Foreign 1,60,000 NIL NIL

Profits from a business carried on at Nepal but

controlled from India

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India
Salary income received in India for services Indian 3,90,000 3,90,000 3,90,000
rendered in Hong Kong

Income from profession in India, but received in Indian 3,60,000 3,60,000 3,60,000
Germany

Property income in Uganda (out of which Rs Foreign 5,00,000 NIL NIL

2,40,000 was remitted to India)
Profits earned from business in Bangalore Indian 1,50,000 1,50,000 1,50,000

Agricultural income in Kenya Foreign 1,60,000 NIL NIL

Profits from a business carried on at Nepal but Foreign 2,20,000 2,20,000 NIL
controlled from India (Exception)

Total 17,80,000 11,20,000 9,00,000

X is resident and ordinarily resident in India for the assessment year 2021-22. He gives the
following information in respect of his income for the previous year 2020-21
• Capital gain on sale of a house situated in Pune
(sale consideration is received in Nepal) 10,00,000
• Salary received in Sri Lanka for rendering services in Tamilnadu 1,60,000
• 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
• 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 2021-22.
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Capital gain on sale of a house situated in Pune Indian 10,00,000 10,00,000 10,00,000
(sale consideration is received in Nepal)

Salary received in Sri Lanka for rendering services

in Tamilnadu

Interest received from Government of India

(it is paid to him in Sri Lanka, the money is utilized
by the Government outside India)

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)

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Capital gain on sale of a house situated in Pune Indian 10,00,000 10,00,000 10,00,000
(sale consideration is received in Nepal)

Salary received in Sri Lanka for rendering services Indian 1,60,000 1,60,000 1,60,000
in Tamilnadu

Interest received from Government of India

(it is paid to him in Sri Lanka, the money is utilized
by the Government outside India)

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)

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Capital gain on sale of a house situated in Pune Indian 10,00,000 10,00,000 10,00,000
(sale consideration is received in Nepal)

Salary received in Sri Lanka for rendering services Indian 1,60,000 1,60,000 1,60,000
in Tamilnadu

Interest received from Government of India Indian 2,56,000 2,56,000 2,56,000

(it is paid to him in Sri Lanka, the money is utilized
by the Government outside India)

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)

Total
Income Type of Resident and Resident and Non-
Income ordinarily Not ordinarily resident in
resident resident India

Capital gain on sale of a house situated in Pune Indian 10,00,000 10,00,000 10,00,000
(sale consideration is received in Nepal)

Salary received in Sri Lanka for rendering services Indian 1,60,000 1,60,000 1,60,000
in Tamilnadu

Interest received from Government of India Indian 2,56,000 2,56,000 2,56,000

(it is paid to him in Sri Lanka, the money is utilized
by the Government outside India)

Royalty received from A Ltd. Foreign 92,00,000 NIL NIL

(a foreign company which is non-resident in India)
outside India (royalty is paid for a manufacturing
business situated outside India)

Total 1,06,16,000 14,16,000 14,16,000