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Sections |
Particulars |
|
2(45) |
Total Income defined |
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6 |
Resident in India |
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6(1) |
Rules for determining the residential status of an individual |
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6(2) |
Rules for determining the residential status of an HUF, Firm, AOP, BOI |
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6(3) |
Rules for determining the residential status of a company |
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6(4) |
Rules for determining the residential status of firm/AOP/BOI |
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6(5) |
Deemed resident |
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6(6) |
Not ordinarily resident in India |
|
7 |
Incomes received or deemed to be received |
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8 |
Dividend Income |
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9 |
Income deemed to accrue or arise in India |
Definition of Total Income [Section 2(45)]
- Total Income means the
total amount of Income referred to in section 5, computed in the
manner laid down in the Income-tax Act.
- Total income is computed
under five heads of income, income computed under each head is
thereafter aggregated and the aggregate amount is known as Gross
Total Income.
- From Gross Total Income,
certain deductions are allowed under sections 80C to 80U and the
balance income after deductions is known as Total
Income.
Scope of Total Income/Incidence of tax [Section 5]
Question: Residential status is to be determined for:
- Previous year
- Assessment year
- Accounting year
Question:Total income of a person is determined on the basis of his:
- Residential status in India
- Citizenship in India
- None of the above
- Both of the above
Question: Determine the residential status in the following cases:
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Year 2005-06 |
Year 2006-07 |
Residential Status for |
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A. Y. 2006-07 |
A. Y. 2008-09 |
||
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ROR |
RNOR |
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NR |
RNOR |
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|
RNOR |
NR |
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|
|
NR |
NR |
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|
|
NR |
ROR |
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In the case of Resident in India (resident and ordinarily resident in case of individual or HUF) [Section 5(1)]: The following incomes from whatever source derived form part of Total Income in case of resident in India/ordinarily resident in India:
- any income which is
received or is deemed to be received in India in the relevant
previous year by or on behalf of such person;
- any income which accrues or
arises or is deemed to accrue or arise in India during the relevant
previous year;
- any income which accrues or
arises outside India during the relevant previous
year.
- any income which is
received or is deemed to be received in India in the relevant
previous year by or on behalf of such person;
- any income which accrues or
arises or is deemed to accrue or arise to him during the relevant
previous year;
- any income which accrues or
arises to him outside India during the relevant previous year if it
is derived from a business controlled in or a profession set up in
India.
In the case of Non-Resident [Section 5(2)]: The following incomes from whatever source derived form part of Total Income in the case of Non-Residents in India:
- any income which is
received or is deemed to be received in India during the relevant
previous year by or on behalf of such person;
- any income which accrues or
arises or is deemed to accrue or arise to him in India during the
relevant previous year.
Q. Determine whether following income is taxable in India?
|
S. No. |
Income |
ROR |
RNOR |
NR |
|
1 |
Salary income in India |
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2 |
Salary in USA |
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3 |
House rent from Property situated in India |
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4 |
Dividend income from Italy |
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5 |
Income from business |
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6 |
Interest income from Swiss Bank |
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|
7 |
Sale of property in Delhi |
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Basic rules for determining residential status of an assessee
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