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Scope of Total Income - Problems and Solutions (3)
- 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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