Comment with reasons on the taxability or otherwise of the following incomes for the year ended on 31st March, 2016 as per the Income-tax Act, 1961: Chandan, an ordinarily resident, earned agricultural income of ₹25,000

CS Professional · Advanced Tax Laws and Practice · PYQS · June 2016
Comment with reasons on the taxability or otherwise of the following incomes for the year ended on 31st March, 2016 as per the Income-tax Act, 1961: Chandan, an ordinarily resident, earned agricultural income of ₹25,000 from land in England. He spent the entire income for his son's education in India.

Answer & Explanation:

Taxable in India: An individual, qualifying as resident and ordinarily resident in India would be liable to pay tax on his / her Global Income. Therefore, the agriculture income of ₹25,000, from a land in England, would be taxable in India. Further Mr. Chandan may be eligible to claim deduction with respect to the expenditure incurred for his son's education in India subject to the provisions of section 80C of the Income tax Act, 1961.

Topics: Income Tax

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