- The document discusses the tax treatment of various incomes for individuals with resident, not ordinary resident, and non-resident tax statuses in India. It provides examples of incomes from different sources and whether they would be taxable under each residential status. - Tables are presented showing the taxable income for three individuals - Mr. X, Mr. Devilal, and Mr. Deepak - under each residential status. The types of incomes included business income, agriculture, salary, house property, capital gains, and more. - Whether an income is taxable depends on factors like where it was earned, where it was received, and whether a business or property is controlled from India. In general, more income sources are taxable

1. SCOPE OF TOTAL INCOME
Dr. R. PREMA
Assistant Professor in
Commerce

2. 1. Which of the following incomes are taxable when the residential status of Mr. X is
Resident, Not Ordinary Resident and Non Resident
Particulars
Income Accrued in Canada, received in India ₹ 2000
₹ 5000 were earned in Africa and received there, but brought to India
₹ 5000 earned in India but received in Canada
₹ 10000 earned and received in Sri Lanka from a business controlled from
India
House Property Income (Computed from Srilanka) ₹ 2000

3. Particulars
₹ 4000 was past untaxed foreign income which was brought to India
during the previous year.
Profit earned from a business in Kanpur ₹ 10000

4. Computation of Total income of Mr. X for the Assessment Year 2021-22
Particulars
OR
₹
NOR
₹
NR
₹
Income Accrued in Canada, received in India ₹ 2000 2000 2000 2000
₹ 5000 were earned in Africa and received there, but brought to 5000 NT NT
₹ 5000 earned in India but received in Canada 5000 5000 5000
₹ 10000 earned and received in Sri Lanka from a business controlled
from India
10000 10000 NT
House Property Income (Computed from Srilanka) ₹ 2000 2000 NT NT
₹ 4000 was past untaxed foreign income which was brought to India
during the previous year.
NT NT NT
Profit earned from a business in Kanpur ₹ 10000 10000 10000 10000
Total Income 34000 27000 17000

5. 2. Which of the following incomes are taxable when the residential status of Mr.
Devilal is Resident, Not Ordinary Resident and Non Resident
Particulars
Share of income from Joint Venture in India ₹ 10000
Dividend ₹ 10000
Income from agriculture in Pakistan ₹ 20000
Salary received in India ₹ 9000 (Computed) but services for the same is
rendered in Iran.
Income from business (Controlled from India) in Pakistan ₹ 10000 and
income remitted to India

6. Particulars
Income earned and received in Pakistan from bank deposit ₹ 5000.
Income accrued in India and received in Iran ₹ 10000

7. Computation of Total income of Mr. Mr. Devilal for the Assessment Year 2021-22
Particulars
OR
₹
NOR
₹
NR
₹
Share of income from Joint Venture in India ₹ 10000 10000 10000 10000
Dividend ₹ 10000 NT NT NT
Income from agriculture in Pakistan ₹ 20000 20000 NT NT
Salary received in India ₹ 9000 (Computed) but services for the
is rendered in Iran.
9000 9000 9000
Income from business (Controlled from India) in Pakistan ₹ 10000
income remitted to India
10000 10000 NT
Income earned and received in Pakistan from bank deposit ₹ 5000. 5000 NT NT
Income accrued in India and received in Iran ₹ 10000 10000 10000 10000
Total Income 64000 39000 29000

8. 3. Which of the following incomes are taxable when the residential status of Shri
Deepak is Resident, Not Ordinary Resident and Non Resident
Particulars
Dividend from Indian Company ₹ 10,000
Profit from business in Japan received in India ₹ 120,000
Profit from business in Pakistan deposited in a bank there. This business is
controlled from India ₹ 2,00,000
Profit from business in Indore(Controlled by London Head office) ₹
Interest received form non-resident Mr Rahim, on the loan provided to
for a business carried on in India ₹ 50,000

9. Particulars
Income was earned in America and received there, but brought in
India ₹80,000
Share of Income from Indian Partnership firm ₹1,50,000
Income from house property in India received in America
₹62,000
Interest on debentures of an Indian Company received in Dubai ₹
25,000
Capital Gain on sale of agricultural land situated at Ajmer ₹ 48,000

10. Computation of Total income of Mr. X for the Assessment Year 2021-22
Particulars
OR
₹
NOR
₹
NR
₹
Dividend from Indian Company ₹ 10,000 NT NT NT
Profit from business in Japan received in India ₹ 120,000 120000 120000 120000
Profit from business in Pakistan deposited in a bank there. This business is controlled from
India ₹ 2,00,000
200000 200000 NT
Profit from business in Indore(Controlled by London Head office) ₹ 1,10,000 110000 110000 110000
Interest received from non-resident Mr Rahim, on the loan provided to him for a business
carried on in India ₹ 50,000
50000 50000 50000
Income was earned in America and received there, but brought in India ₹80,000 80000 NT NT
Share of Income from Indian Partnership firm ₹1,50,000 NT NT NT
Income from house property in India received in America (computed) ₹62,000 62000 62000 62000
Interest on debentures of an Indian Company received in Dubai ₹ 25,000 25000 25000 25000
Capital Gain on sale of agricultural land situated at Ajmer ₹ 48,000 48000 48000 48000
Total Income
695000 615000 415000

11. 4. Which of the following incomes are taxable when the residential status of Mr. X is
Resident, Not Ordinary Resident and Non Resident
Particulars
Interest on German Development Bonds ₹ 51,000 (1/3rd is received in
India)
Interest from Agriculture in Bangladesh, remitted to India ₹ 31,000
Income from property in Canada received in USA ₹ 1,10,000
Income earned from business in Kuwait, business is being controlled
Mumbai (₹ 25,000 is received in India) ₹ 65,000
Dividend from an Indian Company ₹ 15,000
4. Pawan a foreign national furnishes the following particulars of his income
relevant for the previous year 2020-2021. Which of the following incomes are
taxable when the residential status of Mr. X is Resident, Not Ordinary Resident
and Non Resident

12. Particulars
Royalty received in Singapore from Mr. Gul , a resident in India for Technical services
provided for a business carried on in Singapore ₹ 25,000
Profit from business in Chennai, this business in controlled from Singapore
₹ 1,25,000
Profit on sale of a building in India but received in Nepal ₹ 2,50,000
Income from agriculture in Punjab, received in Mumbai ₹ 30,000
Profit from business in Indonesia, this business is controlled from Delhi ( 60% of profit
deposited in a bank there and 40% is remitted to India ) ₹40,000
Interest received from Mr. Shyam, non resident on the loan provided to him
₹ 28,000

13. Computation of Total income of Mr. X for the Assessment Year 2021-22
Particulars
OR
₹
NOR
₹
NR
₹
Interest on German Development Bonds ₹ 51,000 (1/3rd is received in India) 17000 17000 17000
Interest on German Development Bonds ₹ 51,000 34000 NT NT
Interest from Agriculture in Bangladesh, remitted to India ₹ 31,000 31000 NT NT
Income from property in Canada received in USA ₹ 1,10,000 110000 NT NT
Income earned from business in Kuwait, business is being controlled from Mumbai (₹
is received in India) 25000 25000 25000
Income earned from business in Kuwait, business is being controlled from Mumbai (₹
is received in India) ₹ 65,000 40000 40000 NT
Dividend from an Indian Company ₹ 15,000 NT NT NT
Royalty received in Singapore from Mr. Gul , a resident in India for Technical services
provided for a business carried on in Singapore ₹ 25,000 25000 NT NT

14. Computation of Total income of Mr. X for the Assessment Year 2021-22
Particulars
OR
₹
NOR
₹
NR
₹
Profit from business in Chennai, this business in controlled from Singapore
₹ 1,25,000 125000 125000 125000
Profit on sale of a building in India but received in Nepal ₹ 2,50,000 250000 250000 250000
Income from agriculture in Punjab, received in Mumbai ₹ 30,000 NT NT NT
Profit from business in Indonesia, this business is controlled from Delhi ( 60% of profit
deposited in a bank there and 40% is remitted to India ) ₹ 40,000 40000 40000 NT
Interest received from Mr. Shyam, non resident on the loan provided to him
₹ 28,000 28000 28000 28000
Total Income
725000 525000 445000

15. 5. Pawan a foreign national furnishes the following particulars of his income relevant
for the previous year 2020-2021.
Particulars
Profit on sale of plant at London (one-half is received in India) ₹ 1,46,000
Profit on sale of plant at Delhi (one-half is received in London) ₹ 1,02,000
Salary from an Indian Company received in London (one-half is paid for rendering
services in India) ₹ 60,000
Income on U.K Development Bonds (Entire amount is received in London) ₹
Interest from property in London received there ₹ 30,000

16. Particulars
Profit from a business in Delhi managed form India ₹ 49,000
Income form Agriculture in London received there, half of which is used for meting hostel
expenses of Pawans son in England and remaining amount is later on remitted to India ₹
Dividend gross received in London on May 6, 2019 from a company registered in
but mainly operating in U.K ₹ 17,000
Rental Income from a Property in Nepal deposited by the tenant in a foreign branch
an Indian bank operating there ₹ 12,000
Gift from a relative in foreign currency (one-third of which is received in India and
remaining amount is used for meeting education expenses of Pawan’s son in USA)
₹3,70,000
Determine gross total income of pawan for the assessment year 2021-2022 if he is
Resident, Not Ordinary Resident and Non Resident

17. Computation of Total income of Mr. Pawan for the Assessment Year 2021-22
Particulars
OR
₹
NOR
₹
NR
₹
Profit on sale of plant at London (one-half is received in
India) ₹ 1,46,000
73000
73000
73000
-
73000
-
Profit on sale of plant at Delhi (one-half is received in
London) ₹ 1,02,000 102000 102000 102000
Salary from an Indian Company received in London (one-
half is paid for rendering services in India) ₹ 60,000 30000
30000
30000
-
30000
-
Income on U.K Development Bonds (Entire amount is
received in London) ₹ 40,000 40000 - -
Interest from property in London received there ₹ 30,000
30000 - -

18. Computation of Total income of Mr. X for the Assessment Year 2021-22
Particulars
OR
₹
NOR
₹
NR
₹
Profit from a business in Delhi managed form India ₹ 49,000 49000 49000 49000
Income form Agriculture in London received there, half of which is used
meting hostel expenses of Pawans son in England and remaining amount
later on remitted to India ₹ 25,000
25000 - -
Dividend gross received in London on May 6, 2019 from a company
registered in India but mainly operating in U.K ₹ 17,000 - - -
Rental Income from a Property in Nepal deposited by the tenant in a
foreign branch of an Indian bank operating there ₹ 12,000 12000 - -
Gift from a relative in foreign currency (one-third of which is
received in India and remaining amount is used for meeting
education expenses of Pawan’s son in USA) ₹3,70,000
- - -
Total Income 464000 254000 254000

19. 6. Jairam a foreign national furnishes the following particulars of his income relevant
for the previous year 2020-2021.
Particulars
Income from property in New York received there ₹ 1,20,000
Income from business in Kolkata managed from Singapore ₹ 2,40,000
Profit on sale of machinery in California (one-half received in Kolkata) ₹ 90,000
Dividend (Gross) received in Thailand from a company registered in India but
operating in Thailand ₹ 15,000
Income from a house property in Dhaka deposited by the tenant there in a
branch of SBI ₹ 36,000

20. Particulars
Gift in foreign currency ₹3,50,000 from a relative (one-half received in India and the
balance used in New York).
Income from agriculture in Burma ₹ 45,000 received there. 1/3rd used while using visiting there
and 2/3rd remitted latter to Kolkata.
Income from profession (as a management consultant) in Philippines received there.
The profession set up in India ₹ 2,20,000
Compute his total income, if Jairam is
a) A Resident,
b) Not Ordinary Resident
c) Non Resident

21. Computation of Total income of Mr. Jairam for the Assessment Year 2021-22
Particulars
OR
₹
NOR
₹
NR
₹
Income from property in New York received there ₹
1,20,000 120000 - -
Income from business in Kolkata managed from Singapore
₹ 2,40,000 240000 240000 240000
Profit on sale of machinery in California (one-half received
in Kolkata) ₹ 90,000
45000
45000
45000
-
45000
-
Dividend (Gross) received in Thailand from a company
registered in India but mainly operating in Thailand ₹
15,000
- - -
Income from a house property in Dhaka deposited by the
tenant there in a foreign branch of SBI ₹ 36,000 36000 - -

22. Computation of Total income of Mr. Jairam for the Assessment Year 2021-22
Particulars
OR
₹
NOR
₹
NR
₹
Gift in foreign currency ₹3,50,000 from a relative (one-
received in India and the balance used in New York).
- - -
Income from agriculture in Burma ₹ 45,000 received there. 1/3rd
used while using visiting there and 2/3rd remitted latter to
Kolkata.
45000 - -
Income from profession (as a management consultant) in
Philippines received there. The profession set up in India
2,20,000
220000 220000 -
Total Income 751000 505000 285000

23. 23