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Unit 2: Residential Status and Taxation

14. Following are the details of income of Mr. Subramani for the financial year 2009-2010 : Notes
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
Determine the total income in terms of the Income-tax Act, 1961 in the following
situations:
(i) Resident and ordinarily resident of India;
(ii) Resident but not ordinarily resident of India;
(iii) Non-resident.

Answers: Self Assessment

1. (c) 2. (a)
3. (a) 4. (b)

5. True 6. False
7. True 8. True
9. False 10. Taxable
11. Taxable 12. Non Taxable
13. Non Taxable 14. Section 5
15. Residential status 16. India
17. Resident and ordinary resident 18. Cash system
19. Accrue 20. Explanation 1
21. India 22. True
23. False 24. True

25. True
2.10 Further Readings

Books Ahuja, G. K. & Gupta, Ravi, Systematic Approach to Income Tax, Bharat Law
House.
Aggarwal, K., Direct Tax Planning and Management, Atlantic Publications.
Lakhotia, R.N., Income Tax Planning Handbook, Vision Books.
Singhania, V. K. & Singhania, Kapil, Direct Taxes law & Practice. Taxmann
Publications.
Srinivas E. A., Handbook of Corporate Tax Planning, Tata McGraw Hill.

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