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: (e) Past untaxed profits of earlier years of ₹ 2,50,000 lying in bank account maintained in Singapore and being remitted during the previous year 2019-20 to India.
Answer & Explanation:
Any profits of earlier years whether taxed or not when remitted to India are not taxable in the year of receipt. Therefore, past untaxed profits of ₹ 2,50,000 lying in bank account maintained in Singapore and remitted during the previous year to India is not taxable.
Topics: Income Tax Act, 1961
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