Page 59 - DCOM301_INCOME_TAX_LAWS_I

Income Tax Laws – I

Notes Income: It is the consumption and savings opportunity gained by an entity within a specified
timeframe that is generally expressed in monetary terms.
Partnership Firm: It as a relation between two or more persons who have agreed to share the
profits of a business carried on by all of them or any of them acting for all.
Receipt: The receipt of income refers to the first occasion when the recipient gets the money
under his control.
Remittance: Remittance is transmission of income after its first receipt.
Royalty: It is consideration also including any lump sum consideration but excluding any
consideration which would be the income of the recipient chargeable under the head ‘Capital
gains’.

2.9 Review Questions

1. What do you understand by residential status of an individual? How is it related to
incidence of an assessee?
2. Define the division of taxable entities for the purpose of determining residential status.
3. Discuss in detail the provisions for determining the residential status of an assessee.

4. Describe how you would determine the residential status of an assessee.
5. Write a note on residential status of a company.
6. Define incidence of tax as per section 5 of the income Tax Act 1961.

7. Differentiate between Indian and Foreign Income.
8. Explain the meaning of Income received or deemed to be received in India.
9. Mention the different categories of income which are deemed to accrue or arise in India.
10. X, an Indian citizen, leaves India on May 22, 2005 for vacation to Uganda and returns on
April 9, 2006. Determine the residential status of X for the assessment year 2006–07.
11. Y, a foreign citizen, visits India since 1985 every year for a period of 100 days. Determine
the residential status of Y for the assessment year 2006–07.
12. Rakesh was working as a crew member on an Indian ship plying in foreign waters. During
the year ended 31.03.2008, the ship did not touch the Indian coast, except for 180 days. State
the residential status for the assessment and taxability of his salary.
13. X got an employment in Singapore during the previous year 2008–09. He left for Singapore
on August 9, 2008. He is an Indian Citizen. Determine the residential status for the
Assessment Year 2009–10.
14. Following are the details of income of Mr. Subramani for the financial year 2009–2010:
Income from property in Sri Lanka remitted by the tenant to the assessee
in India through SBI ` 2,10,000
Profit from business in India ` 1,00,000
Loss from business in Sri Lanka (whose control and management of
business wholly remained in India) ` 80,000
Dividend from shares in foreign companies received outside India ` 60,000
Interest on deposits in India companies ` 1,20,000

54 LOVELY PROFESSIONAL UNIVERSITY