CA Final DT – Part I – Chapter 2 – Residence and Scope of Total Income MCQs

Residential status of an assessee must be ascertained with reference to each

Basic Condition for an Individual to be considered as Resident in India is
• He has been in India during relevant Previous Year for a total period of 182 days or more
• He has been in India during the 4 years immediately preceding the relevant previous year for a total period of 365 days or more and has been in India for at least 60 days in the relevant previous year.

For the purpose of determining Residential Status of an individual, the period of stay in India must be

Mr. David arrives in India from USA on 20th April 2021 and leaves India back to USA on 28th June 2021. For the purpose of counting number of days stayed in India,

The incidence of tax on any assessee depends upon

The concept of Deemed Resident arises in case of

The concept of Resident but not ordinarily resident arises only in case of

In order to determine the residential status of HUF , the term “control and management” refers to the place where

Additional Conditions for determining whether HUF is Resident and not ordinarily resident or otherwise includes
i) Karta of the resident HUF should be resident in at least 2 previous years out of 10 previous years immediately preceding relevant previous year.
ii) Stay of Karta during 7 previous years immediately preceding relevant previous year should be 730 days or less.
iii) HUF should be resident in at least 2 previous years out of 10 previous years immediately preceding relevant previous year.
iv) Stay of Karta during 7 previous years immediately preceding relevant previous year should be 730 days or more.

A company would be resident in India in any previous year if,

POEM is meant to be a place where –

Which one of the following companies are resident in India.
(i) A Ltd – registered in India
(ii) B Ltd – registered in Dubai and POEM situated in Dubai
(iii) C Ltd – registered in Australia , 85% of the business of the company is conducted in India
(iv) D Ltd – registered in Malaysia and POEM situated in India.

The scope of total income of the assessee depends upon

For an assessee who is resident and ordinarily resident taxable income includes

For an assessee who is resident and not ordinarily resident taxable income includes
i) Total income accrued or deemed to accrue in India
ii) Total income accrued or deemed to accrue outside India
iii) Total income received or deemed to be received in India
iv) Total income received or deemed to be received outside India
v) Total income accruing or arising outside India derived from a business controlled in or profession set up in India

Mr. Samson , a non resident sea farer had his salary credited to his NRE account maintained with the State Bank of India, Thane Branch, for the services rendered by him outside the territory of India, in a ship (bearing flag of Germany) bound to Germany. Such salary credited –

Mr. Arnold, a non resident sea farer had his salary credited to his NRE account maintained with the State Bank of India, Delhi Branch, for the services rendered by him outside the territory of India, in a ship (bearing Indian flag) bound to Malaysia. Such salary credited –

Which of the following incomes are deemed to be received in India
i) Contribution in excess of 12% of salary to RPF or Annual accretion to the credit of RPF in excess of 9.5%
ii) Contribution upto 12% of salary to RPF or Annual accretion to the credit of RPF upto 9.5%
iii) Contribution by Central Government or any other employer in the PY under a pension scheme referred u/s 80CCD
iv) Amount transferred from URPF to RPF (being employer’s contribution and interest thereon)
v) Amount transferred from URPF to RPF (being employee’s contribution and interest thereon)

Identify the option which correctly throws light on the meanings of the term “Accrue” and “Due”
Mr. A receives payment of salary on the 1st of June for the work performed by him in the month of May. In this case salary accrues for ________ and is due on_________

Mr. Avinash born in Bangalore, visits India from Paris after 14 years. He comes to India on 15/05/2021 and leaves back on 15/01/2022. Mr. Avinash is –

Ms. Shraddha working at Singapore gets her salary credited to her bank account in Bangalore, maintained jointly in the name of her and her mother to meet the requirements of family. Determine the taxability of her income in India.

Which of the following are considered to be Income deemed to accrue or arise in India in accordance with Section 9(i)?
i) Dividend paid by Indian Company outside India
ii) Salary payable by Government to Indian citizen for services rendered outside India
iii) Salary payable by Government to foreign citizen for services rendered in India
iv) Income accruing or arising directly or indirectly ,through/from Transfer of capital asset situated in India
v) Income accruing or arising directly or indirectly ,through/from Transfer of current asset situated in India
vi) Income accruing or arising directly or indirectly, through/from any Business Connection in India.

Mr. Aarav is settled in France since 2010. He is a citizen of France and visits India for four months (in continuation) every year. What is the residential status of Aarav for A.Y 2022-23

HUF of Mr. Prakash consisting of himself, his wife & 3 sons is assessed to tax. HUF is said as non resident when .

If Karta is ROR but control & management of HUF is situated partly outside India in PY, HUF is:

NK Ltd. is registered in India but it has POEM in Nepal. PC Ltd. is registered in Nepal but it has POEM in India.

RK Ltd. is an Indian company. It carries its business in Mumbai & London. The POEM of the company is situated in London. More than 85% of its business income is from the business in England. If so, its residential status will be-

Indian Income means

Foreign Income means

Income received in India during the previous year is taxable in the case of

Foreign income received in India during the previous year is taxable in the case of

Incomes which accrues in India but received outside India are taxable in case of

Income which accrue or arise outside India & also received outside India is taxable in case of

Income which accrue outside India from business controlled from India is not taxable in India in case of:

Which Income is taxable in India in case of non-resident?

Un-taxed profit of PY 2020-21 remitted to India in PY 2021-22 is taxable in AY 2022-23 for

Profits of Rs. 50,00,000 for PY 2020-21 of a business in Amsterdam remitted to India during PY 2021-2022 (not taxed earlier) would be.

Mr. Anil is Karta of HUF having business at Kolkata. Mr. Anil is residing in Dubai for past 10 years & visited India for 20 days every year for filing Income tax return of HUF. His 4 major sons take care of the day to day affairs of business in India. Residential status of HUF for AY 2022-23 is:

A company is considered to be resident if:

As per Section 9(1), apart from Interest, Royalty and Fees for Technical Services subject to conditions stated therein, which of the following income is deemed to accrue or arise in India