The document discusses the computation of total income for two individuals - Pawan and Jairam - for the assessment year 2020-2021 based on their residential status as resident, not ordinary resident, or non-resident. For Pawan, the total income is ₹464,000 as a resident, ₹254,000 as a not ordinary resident, and ₹254,000 as a non-resident. For Jairam, the total income is ₹751,000 as a resident, ₹505,000 as a not ordinary resident, and ₹285,000 as a non-resident. The document provides details of the income sources and amounts for each individual and the treatment

1. SCOPE OF TOTAL INCOME
Dr. NGPASC
COIMBATORE | INDIA
Dr. N.G.P. ARTS AND SCIENCE COLLEGE
(An Autonomous Institution, Affiliated to Bharathiar University, Coimbatore)
Approved by Government of Tamil Nadu and Accredited by NAAC with 'A' Grade (2nd Cycle)
Dr. N.G.P.- Kalapatti Road, Coimbatore-641048, Tamil Nadu, India
Web: www.drngpasc.ac.in | Email: info@drngpasc.ac.in | Phone: +91-422-2369100
RAJAKRISHNAN M
Assistant Professor in Commerce CA

2. Dr. NGPASC
COIMBATORE | INDIA
Scope of Total Income
1. Pawan a foreign national furnishes the following particulars of his income relevant for the
previous year 2019-2020.
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) ₹ 40,000
Interest from property in London received there ₹ 30,000

3. Dr. NGPASC
COIMBATORE | INDIA
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 ₹ 25,000
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
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 2020-2021 if he is Resident,
Not Ordinary Resident and Non Resident

4. Scope of Total Income
Computation of Total income of Mr. Pawan for the Assessment Year 2020-21
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 - -
Dr. NGPASC
COIMBATORE | INDIA

5. Computation of Total income of Mr. X for the Assessment Year 2020-21
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 for meting
hostel expenses of Pawans son in England and remaining amount is 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 254000Dr. NGPASC
COIMBATORE | INDIA

6. Dr. NGPASC
COIMBATORE | INDIA
Scope of Total Income
2. Jairam a foreign national furnishes the following particulars of his income relevant for the
previous year 2019-2020.
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 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

7. Dr. NGPASC
COIMBATORE | INDIA
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

8. Computation of Total income of Mr. Jairam for the Assessment Year 2020-21
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 - -
Dr. NGPASC
COIMBATORE | INDIA

9. Computation of Total income of Mr. Jairam for the Assessment Year 2020-21
Particulars
OR
₹
NOR
₹
NR
₹
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.
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
Dr. NGPASC
COIMBATORE | INDIA

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