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: Dinesh, a citizen of India, got employment in Burma. He left India on 1
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: Dinesh, a citizen of India, got employment in Burma. He left India on 1st September, 2015 after earning ₹5,00,000 in India. He earned ₹7,00,000 in Burma during the previous year.
Answer & Explanation:
As Dinesh, citizen of India, has left India for the purpose of employment outside India, present in India for less than 182 days during the previous year and therefore qualifying as non-resident 'NR' in India. Accordingly, he would be liable to pay tax on source based income in India. Therefore, Income of ₹5,00,000 earned in India would only be taxable in India. Income of ₹7,00,000 earned outside India i.e. in Burma would not be taxable in India.
Topics: Income Tax
Related Questions in this Topic
- Explain the provisions relating to presumptive taxation scheme for assesses engaged in eligible professionals u/s 44 ADA...
- Explain the followings with reference to the provisions of Advance Ruling u/s 245 of the Income Tax Act, 1961: (d) Kaka ...
- Explain the followings with reference to the provisions of Advance Ruling u/s 245 of the Income Tax Act, 1961: (c) Naray...
- Explain the followings with reference to the provisions of Advance Ruling u/s 245 of the Income Tax Act, 1961: (b) Sumit...
- Explain the followings with reference to the provisions of Advance Ruling u/s 245 of the Income Tax Act, 1961: (a) Kiran...