Abhay earns the following income during the previous year ended 31st March, 2014: Interest on U.K. Development Bonds (1/4th being received in India): ₹2,00,000; profits on sale of a building in India but received in Holl

CS Executive · Tax Laws and Practice · PYQS · December 2014
Abhay earns the following income during the previous year ended 31st March, 2014: Interest on U.K. Development Bonds (1/4th being received in India): ₹2,00,000; profits on sale of a building in India but received in Holland: ₹2,00,000. The income liable to tax for the assessment year 2014-15 if Abhay is resident and not ordinarily resident in India, is —
(A) ₹2,50,000
(B) ₹4,00,000
(C) ₹2,00,000
(D) ₹50,000.

Answer & Explanation:

Correct Answer: Option (A)

Correct answer: (A) ₹2,50,000. RNOR taxable income includes 50,000 received in India from UK bond interest and 2,00,000 from the Indian building: total 2,50,000. This answer applies to the historical law and assessment-year context of this December 2014 paper; later amendments may differ.

Topics: Income Tax Act, 1961

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