Anand provides the following details/particulars of his income earned from various activities during the financial year 1-04-2019 to 31-03-2020: (i) Shares of XYZ Ltd an Indian company sold in the month of August, 2019 o

CS Professional · Advanced Tax Laws and Practice · PYQS · December 2020
Anand provides the following details/particulars of his income earned from various activities during the financial year 1-04-2019 to 31-03-2020: (i) Shares of XYZ Ltd an Indian company sold in the month of August, 2019 outside India in UK to a Non-resident individual which resulted into short term capital gain of ₹ 75,000. (ii) Interest received on the bonds from Government of India ₹ 28,500. (iii) Rental income of ₹ 9,00,000 received from the property located in Dubai which was deposited in the bank account maintained in Dubai. Out of this; an amount of ₹ 4,50,000 was remitted in a bank account in India during the year ended on 31-03-2020 and remaining amount was spent for the education of son doing MBA in U.K. (iv) Income of ₹ 1,80,000 earned from textile business in Sri Lanka which is being controlled from Mumbai. Compute the total income of Anand for the A.Y. 2020-21 by taking his residential status as a (i) resident, and (ii) non-resident.

Answer & Explanation:

Computation of Total Income of Mr. Anand for AY 2020-21 S. No. Particular Resident (₹) Non-Resident (₹) (i) Short term capital gain on sale of shares of an Indian Company (income deemed to accrue or arise in India) 75,000 75,000 (ii) Interest received on Bonds from Government of India (Income deemed to accrue or arise in India) 28,500 28,500 (iii) Rental income from house property situated outside India (Income accrued or arise outside India) 9,00,000 - (iv) Income from business in Sri Lanka which is being controlled from India (Income accrued or arise outside India from a business controlled from India) 1,80,000 - Total Income 11,83,500 1,03,500 Note: Assumption: Resident is considered as Resident and Ordinarily Resident 'ROR'. However if considered Resident as RNOR the answer shall be ₹ 75,000 + ₹ 28,500 + NIL + ₹ 1,80,000 = ₹ 2,83,500.

Topics: Income Tax Act, 1961

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic