The residential status of Thomas for the previous year 2019-20 is of a resident but not ordinarily resident (R&NOR). He has following income during the year and asks you to explain by giving brief reasons as per prov
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2020
The residential status of Thomas for the previous year 2019-20 is of a resident but not ordinarily resident (R&NOR). He has following income during the year and asks you to explain by giving brief reasons as per provisions of the Income Tax Act, 1961 whether the same be taxable in the assessment year 2020-21: (c) Income received and accrued outside India from a business of cosmetics of ₹ 1,25,000 which is being controlled from India.
Answer & Explanation:
Any income accrued or received from a business controlled or a profession set up in India is taxable as income for RNOR u/s 5 of the Income Tax Act, 1961 and therefore income of ₹ 1,25,000 of the cosmetics business shall be subject to tax.
Topics: Income Tax Act, 1961
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