scope of total income, indian income, income received in india, income deemed to be received in india, income accrued in india, income deemed to be accrued in india, foreign income, deemed income

1. Scope of Total Income
Presentation
Tripathi Online Educare

2. B- Foreign Income :-
From a business which is controlled & managed
1. With in India
A- Indian Income :-
R.&.O.R. R.B.N.O.R. N.R.I.
1. Income received in India
2. Income deemed to be received India
3. Income accrued in India
`
4. Income deemed to be accrued in India Taxable Taxable Taxable
Taxable Taxable Taxable
Taxable Taxable Taxable
Taxable Taxable Taxable
Taxable Taxable Not
Taxable
Taxable Not
Taxable
Not
Taxable
INCOME
2. Outside India

3. Tripathi Online Educare
Q.1) Mr. Vilas, a foreign national, furnishes the following particulars of his income for the previous
year relevant to Assessment Year 2017-18.
1. Profit on sale of plant at London Rs. 46,000/- (half is received in India).
2. Profit on sale at Delhi Rs. 52,000/- (half is received in London).
3. Interest on U.K. Development Bonds Rs. 40,000/- (entire amount received in London).
4. Interest on Bank Accounts in India Rs. 5,000/-.
5. Dividend from British Company received in India Rs.2,000/-.
6. Income from property in London Rs.3,000/-.
7. Interest received in London from a company registered in India but mainly operating in U.K.
Rs. 18,000/-.
8. Profit from a business in Delhi managed from India Rs.30,000/-.
9. Income from a business in Ceylon controlled from India Rs.10,000/-
10. Rental income from a property in Nepal deposited by a tenant in a foreign branch of an
Indian Bank operating there Rs.25,000/-.
11. Salary earned and received in Hong Kong Rs.19,000/-.
Determine gross total income of Mr. Vilas for the assessment year 2017-18 if he is (i) Resident
and ordinarily resident; (ii) Resident but not ordinarily resident & (iii) Non-Resident.

4. Tripathi Online Educare
Solution:
Gross total income of Mr. Vilas will be different according to different residential status while citizenship of Mr.
Vilas is immaterial.
Particular R & OR RBNOR NRI
1. Profit on sale of plant at London:
a. Received in India (46,000 x ½) 23,000 23,000 23,000
b. Received outside India (46,000 x ½) 23,000 NIL NIL
2. Profit on sale of plant at Delhi. 52,000 52,000 52,000
3. Interest on U.K. Development Bonds. 40,000 NIL NIL
4. Interest on Bank Accounts in India 5,000 5,000 5,000
5. Dividend from British Company received in India. 2,000 2,000 2,000
6. Income from property in London. 3,000 NIL NIL
7. Interest received in London from a company registered in India. 18,000 18,000 18,000
8. Profit from a business in Delhi managed from India. 30,000 30,000 30,000
9. Income from a business in Ceylon controlled from India. 10,000 10,000 NIL
10. Rental income from a property in Nepal deposited by a tenant in
a foreign branch of a Indian Bank operating there. 25,000 NIL NIL
11. Salary earned and received in Hong Kong. 19,000 NIL____ NIL____
TOTAL 2,50,000 1,40,000 1,30,000

5. Tripathi Online Educare
Deemed income u/s 41 {SALARIES}
SALARIES
Employed and
paid in India
Employed abroad by
Indian employer
Employed by foreign company
for services outside India &
paid abroad
whether by Indian
or foreign employer
Taxable only in the
hand of Resident &
ordinary resident
Paid in India Paid abroad
R &OR
RBNOR
NRI
R&OR RBNOR
NRI
Taxable
in
India
Not
Taxable in
India
Taxable
in
India

6. Thank You!
Tripathi Online Educare