Questions on Scope of Total Income

Q.1 Mr. Chris Gayle a Non-Resident in India for the previous year 2019-20 gives you the
following information of his income.
Sr. No. Particulars Amount
(1) Salary Earned and Received in India Rs.75,000
(2) Interest on Deposit from Indian Companies Received outside India Rs.25,000
(3) Dividend from German Companies Received in West Indies Rs.15,000
(4) Profit from Business at London controlled from Mumbai Rs.45,000
(5) Profit from Business at Delhi controlled from Germany Rs.50,000
(6) Interest on Bank Deposit in Australia Received there. Rs.10,000
(7) Dividend from Indian company received in London. Rs.20,000
(8) Rent from house property in New-Delhi received in London. Rs.24,000
(9) Rent from a flat at Zurich received in London. Rs.40,000
(10) Profits from Business established in India received in London. Rs.1,30,000
(11) Agricultural Income from Land at Nepal, amount received in India. Rs.1,20,000
(12) Rent from shop at Dubai, but received in India. Rs. 5,00,000
Determine the total income taxable in India according to provisions of Section 5.

Q.2 Mr. Harish provides you with the following details for the P.Y. 2019-20.
Particulars Rs.
(1) Profit on disposal on property situated in India 1,400
(1/2 of the amount is received in Bangladesh).
(2) Income earned and received in Moscow. 3,400
(3) Income from House property situate in India but income is received in Germany 9,400
(4) Salary earned and received in India 15,000
(5) Interest on Bank deposits in New Zealand received there 2,000
(6) Dividend from Indian Company received in Los Angeles 4,000
(7) Income from business in London controlled from India 14,000
Compute the total income of Mr. Harish as per the provisions of Section 5 of the Income Tax Act
1961 assuming that he is: (a) Resident and Ordinary Resident. (b) Resident But not Ordinary
Resident. (c) Non-Resident.

Q.3 Determine the taxability of the following incomes in the hands of Mr. Naresh Chandra
assuming that he is a resident and ordinarily resident, resident but not ordinarily resident, and
non-resident for the P. Y. 2019-20.
Particulars Rs.
Interest on UK Development Bonds, 50% of interest received in India 1,00,000
Income from a business in Chennai (50% is received in India) 2,00,000
Profits on sale of shares of an Indian company received in London 2,00,000
Dividend from British Company received in London 1,50,000
Profits on sale of plant at Germany 50% of Profits are received in India 1,40,000
Income earned from business in Germany which is controlled from Delhi 1,70,000
(Rs. 40,000 is received in India)
Profits from a business in Delhi but managed entirely from London 1,15,000
Rent from property in London deposited in a Indian Bank at London, brought to India 1,50,000
Interest for debentures in an Indian Company received in London 1,12,000
Fees for technical services rendered in India but received in London 1,08,000

Q.4 Determine the taxability of the following incomes in the hands of Mr. Sanjay if he is a
resident and ordinarily resident, resident but not ordinarily resident, and non-resident for the P.Y.
2019-20.
Particulars Rs.
Interest on UAE Development Bonds, 50% of interest received in India 30,000
Income from a business in China (50% is received in India) 30,000
Profits on sale of shares of an Indian company received in London 30,000
Dividend from British Company received in Delhi 5,000
Salary income received in India for services rendered in Nepal 15,000
Income from profession in India, but received in France. 10,000
Property income in Belgium (out of which Rs.6,000 was remitted to India). 9,000
Profits earned from business in Hyderabad. 8,000
Profits from a business carried on at Nepal but controlled from India. 25,000
Compute his income for assessment year 2020-21 if he is resident and ordinarily resident, Not
ordinarily resident, and Non-resident in India.

Q.5 Mr. Aakash earns the following income. Compute his total income for A.Y. 2020-21 if he
is (i) resident and ordinarily resident; (ii) resident but not ordinarily resident; (iii) non-resident.
Particulars Rs.
Profits from a business in Ranchi managed from Canada 23,000
Income from property in Canada received there 36,000
Income from agricultural land in Nairobi received there and remitted to India later on 33,500
Interest on debentures in an Indian company received in Canada 6,200
Income from profession in Canada which was set up in Patna, received there 42,000
Profits earned from business in Canada which is controlled from Jamshedpur, 25% of 80,000
the profits being received in Jamshedpur
Salary received in the United Kingdom from government of India for the services 28,000
rendered in UK
Income from agriculture in Japan. 16,000
Interest received in Paris in respect of securities in German Companies 25,000
Amount brought into India out of the past untaxed profits earned in Germany 34,000
Pension from Employer in India received in Mauritius 60,000
Rental income from Property in New York deposited by a tenant in a Foreign Branch 25,000
of Indian Bank, deposited there

Q.6 Mr. Sanjay Bhandari is citizen of India. Following is the information given about his stay
in India during various financial years. Determine his residential status for AY 2020-21.

Previous Year No. Of Days Previous Year No. Of Days

2019-20 70 2012-13 105
2018-19 91 2011-12 110
 2017-18 190 2010-11 112
2016-17 89 2009-10 100
2015-16 87 2008-09 91
2014-15 86 2007-08 94
2013-14 84 2006-07 97

Also determine his total income & compute tax liability for AY 2020-21 from the
following information about his income during PY 2019-20.
(1) Income from house property in London, received in India 60,000
(2) Income from floriculture 2,75,000
(3) Profits from business in Japan and managed from there (received in 1,00,000
Japan)
(4) Dividend from foreign company, received in India 30,000
(5) Short term Capital gains on transfer of shares of Indian companies, 2,00,000
sold in USA and gains were received there