Chapter 2 - Residential Status - TAX LAW SCANNER 2021

 

Chapter Two Residential Status

 

1. Total income is based on / total income varies according to:

a) residential status of assessee

b) citizenship of assessee

c) both A and B

d) none of the above

 

ANS –  A

 

2. ………………… is determined for each category of persons separately:

a) Residential status

b) Citizenship

c) Originship

d) All the above

 

ANS – D

 

1. A person may be resident in ………… in any previous year:

a) more than one country

b) only one country

c) only two country

d) none of the above

 

ANS – A

 

2. A person may be a ……………………. but may not be…………….

a) citizen of India, resident of India

b) resident of India, citizen of India

c) Both a) and b)

d) None of the above

 

ANS – C

 

3. Individual is a resident in India if he is in India for a period or periods amounting in all to:

a) more than 182 days

b) 182 days or more

c) less than 182 days

d) 60 days or more

 

ANS – B

 

4. The condition of 182 days or more shall be checked in:

a) relevant previous year

b) relevant assessment year

c) relevant calendar year

d) relevant valuation date

 

ANS – A

 

5. In case of exception in basic condition, which of the following condition will be checked:

a) stay in India for 182 days or more

b) stay in India 120 days or more and 365 days or more in 4 I.P.P.Y

c) both A or B depend on case

d) None of the above

 

ANS – C

 

6. For an assessee to fall in exception, he should leave India:

a) for the purpose of employment

b) in the course of employment

c) for the purpose of employment or member of crew of an Indian ship

d) None of the above

 

ANS – C

 

7. In case when left India for the purpose of employment, the condition of 182 days or more should be checked in the relevant previous year in which:

a) He/ she left India

b) He/ she visits India

c) Both a) and b)

d) None of the above

 

ANS – A

 

8. In case when Indian citizen visit in India, the condition of 120 days or more must be checked in the relevant previous year in which

a) he visits India

b) he left India

c) depends upon the residential status of assessee

d) None of the above

 

ANS – A

 

9. A person merely undertakings tours abroad in connection with his employment in India would

a) avail relaxation of exception one in section 6

b) not avail relaxation of exception one in section 6

c) no provision in law

d) None of the above

 

ANS – B

 

10. In computing the period of stay in India it is …………………. that stay should be for a ……..

a) not necessary, continuous period

b) necessary, continuous period

c) Either a) and b)

d) None of the above

 

ANS – A

 

11. Which of the following statement is false?

a) Presence in territorial waters of India (TWI) would also be regarded as present in India

b) Place and purpose of stay is immaterial

c) Residential status shall be determined in relevant P.Y

d) In computing period stay in India, day of entry & leaving India are not considered as stay in India

 

ANS – D

 

12. HUF will become Non-resident if:

a) control & management is wholly situated outside India

b) control & management is partly in India and partly outside India

c) control & management is wholly situated India

d) None of the above

 

ANS – A

 

13. Indian company is said to be resident in India if:

a) Control wholly or partly in India

b) Always resident

c) Control wholly in India

d) Control wholly outside India

 

ANS – B

 

14. If foreign company POEM is in India, then it is( T.O is upto Rs 50 cr.):

a) Non-resident in India

b) Resident in India

c) RNOR in India

d) None of the above

 

ANS – A

 

15. If the POEM of an Indian company is wholly outside India, then company will become:

a) Resident in India

b) Non-resident in India

c) RNOR in India

d) None of the above

 

ANS – A

 

16. An individual, resident in India, shall be resident and ordinary resident in India if he satisfies

a) Any one basic condition

b) Both additional condition

c) Both basic condition

d) Any one additional condition

 

ANS – B

 

17. In 2nd additional condition, assessee should have stayed in India for:

a) more than 730 days during 7 immediately preceding previous year

b) 730 days or more during 7 immediately preceding previous year

c) 365 days or more during 4 immediately preceding previous year

d) 182 days or during relevant immediately preceding previous year

 

ANS – B

 

18. HUF which is Resident India shall be said to ROR in India if:

a) any adult of HUF satisfies both additional conditions

b) Karta of HUF satisfies any one basic condition

c) Karta of HUF satisfies both additional conditions

d) Karta of HUF satisfies any one additional condition

 

ANS – C

 

19. Past untaxed profit of the financial year 2006-07 brought to India in 2020-21 is chargeable to tax in the assessment year 2021-22 in hands of:

a) All the assessee

b) ROR

c) Non-resident in India

d) None of the above

 

ANS – D

 

20. A person say, Mr. X resident has been non-resident in 9 out of 10 preceding previous year; his residential status is:

a) Resident in India

b) Non-resident in India

c) ROR in India

d) RNOR in India

 

ANS – D

 

21. Income accruing from agriculture activity in foreign country is taxable in case of an assessee who is:

a) Resident/ Resident and ordinarily resident

b) Resident and not ordinarily resident

c) Non-resident

d) None of the above

 

ANS – A

 

22. Foreign income received in India during the previous year is taxable case of which assessee:

a) Resident

b) Not-ordinarily resident

c) Non-resident

d) All the above

 

ANS – D

 

23. Income earned and received outside India but later remitted to India, is taxable in case of:

a) All assessee

b) ROR

c) Non-resident

d) None of the above

 

ANS – D

 

24. An individual born in India left for employment from India to France on 30.10.2020. He visited outside India for the first time. His residential status for the assessment year 2021-22 will be

a) ROR

b) RNOR

c) Non-resident

d) None of the above

 

ANS – A

 

25. Income which accrue or arise outside India from business controlled from India is taxable in case of:

a) ROR

b) Non-resident

c) Both ROR & RNOR

d) All of the above

 

ANS – C

 

26. A resident in India cannot become resident in any other country for the same previous year:

a) True

b) False

c) Partly true partly false

d) None of the above

 

ANS – B

 

27. “X” was born on 5th May, 1992 in India & later on took the citizenship of U.S.A. Neither his parents nor his grandparents were born in divided/ undivided India. “X” in this case shall be:

a) Citizen of India

b) Person of Indian origin

c) A foreign national

d) None of the above

 

ANS – C

 

28. “X”, a foreign national visited India during the previous year 2020-21 for 180 days. He had never visited India prior to this visit. “X” in this case shall be:

a) Resident in India

b) Non-resident in India

c) RNOR

d) None of the above

 

ANS – B

 

29. Salary payable by Government to an Indian citizen who is non-resident in India for services rendered outside India is not taxable in India:

a) True

b) False

c) Partly true partly false

d) None of the above

 

ANS – B

 

30. Steve Waugh, the Australian cricketer comes to India for 100 days every year. Find out his residential status for the A.Y. 2021-22.

a) Non-resident

b) ROR

c) RNOR

d) None of the above

 

ANS – C

 

31. Mr. C, a Japanese citizen left India after a stay of 10 years on 01.06.2019. During financial year 2020-21, he came to India for 46 days. Later, he returned to India for 1 year on 10.10.2020. Determine his residential status for the A.Y. 2018-19.

a) Resident & ROR in India

b) RNOR

c) Non-resident in India

d) None of the above

 

ANS – C

 

32. Wipro Ltd., Indian company has most of its business o/s India. Determine its residential status.

a) Resident

b) Non-resident

c) RNOR

d) None of the above

 

ANS – A

 

33. Mr. NishantKhurana earns the following income during the financial year 2020-21:

I. Income from house property in London, received in India 60,000

II. Profits from business in Japan and managed from there (received in Japan) 9,00,000

III. Dividend from foreign company, received in India 30,000

IV. Dividend from Indian company, received in England 50,000

Compute his income presuming that he is ROR, RNOR and NR.

a) 9,90,000 / 90,000 / 90,000

b) 10,40,000 / 1,40,000 / 1,40,000

c) 10,40,000 / 90,000 / 90,000

d) None of the above

 

ANS – B

 

34. Mr. Nishant Khurana earns the following income during the financial year 2020-21:

I. Past untaxed profits of UK business of 2015-16 brought into India in 2020-21 90,000

II. Interest on Government securities accrued in India but received in Paris 80,000

III. Interest on USA Government securities, received in India 20,000

Compute his income presuming that he is ROR, RNOR and NR.

a) 1,00,000 each

b) 80,000 each

c) 1,90,000 each

d) None of the above

 

ANS – A

35. Income accrued outside India and received outside India is taxable in case of:

a) Resident and ordinary resident(ROR)

b) Resident but not ordinary resident(RNOR)

c) Non-resident

d) ROR, RNOR and Non-Resident

 

ANS – A

 

36. An Indian company would:

a) be resident in India if its POEM is wholly situated in India

b) be resident in India if its POEM is wholly or partly situated in India

c) be resident in India if its POEM is wholly situated outside India

d) be always resident in India irrespective of POEM

 

ANS – D

 

37. Determine the residential status of a HUF if HUF's control and management is wholly situated in India and Karta of HUF is a Non-resident in India for that previous year.

a) Resident and Ordinary Resident(ROR)

b) Resident but not ordinary resident (RNOR)

c) Non-Resident (NR)

d) Either ROR or RNOR

 

ANS – D

 

38. Profits of ` 2,00,000 is earned from a business in USA which is controlled in India, half of the profits being received in India. How much amount is taxable in India for a Non- resident individual?

a) ` 2,00,000

b) Nil

c) ` 1,00,000

d) ` 3,00,000

 

ANS – C

 

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

a) Resident

b) Not ordinarily resident

c) Non-resident

d) All of the above

 

ANS – D

 

40. If Anirudh has stayed in India in the P.Y. 2020-21 for 181 days, and he is non-resident in 9 out of 10 years immediately preceding current previous year and stayed in India for 365 days in all in 4 years immediately preceding current previous year and 420 days in all in 7 years immediately preceding current previous year, his residential status for AY 2021-22 would be

a) Resident and ordinarily resident

b) Resident but not ordinarily resident

c) Non-resident

d) None of the above

 

ANS – B

 

41. Incomes accruing or arising outside India but received directly into India are taxable in case of

a) Resident only

b) Both ordinarily resident and NOR

c) Non-resident

d) All of the above

 

ANS – D

 

42. Income which accrue or arise outside India and also received outside India taxable in case of:

a) ROR only

b) not ordinarily resident

c) both ordinarily resident and NOR

d) none of the above

 

ANS – A

 

43. Once a person is resident for a source of income in a particular previous year he shall be deemed to be resident for all other sources of income in the same previous year

a) True

b) False

c) Partly true

d) None of the above

 

ANS – A

 

44. Once a person is resident for a source of income in a particular previous year he shall be deemed to be resident for same sources of income in the all previous year

a) True

b) False

c) Partly true

d) None of the above

 

ANS – A

 

45. R Ltd. is registered in U.K. The POEM situated in India. R Ltd shall be [ T.O is 100 cr] :

a) Resident in India

b) Non-resident in India

c) Not ordinarily resident in India

d) None of the above

 

ANS- A

 

46. R, a foreign national visited India during previous year 2020-21 for 180 days. Earlier to this he never visited India. R in this case shall be:

a) Resident in India

b) Non-resident in India

c) Not ordinarily resident in India

d) None of the above

ANS – B

 

47. A person is said to be resident in India if he satisfies:

a) Any one basic condition

b) Both basic condition

 

ANS – A

 

48. A company other than an Indian company would be a resident in India for the previous year 2020-21, if during that year its…………….. is situated in India?

a) Control

b) Management

c) place of effective management

d) Any of the above

 

ANS – C

 

49. The residential status of an assessee is determined in relevant…………….?

a) Previous year

b) Assessment year

c) Calendar year

d) None of the above

 

ANS – A

 

50. The incidence of tax on any assessee depends upon this………………. under this act?

a) Residential status

b) Originship of country

c) Citizenship of country

d) All the above

 

ANS – A

 

51. An Indian company is always resident in India no matter where and to what extent its place of effective management is situated?

a) True

b) False

c) Partly true

d) None of the above

 

ANS – A

 

52. Vivek ltd. is a company registered in Japan [ T.O is 60 cr]. The POEM is wholly situated in o/s India. Vivek ltd is non-resident company in India?

a) True

b) False

c) Partly true

d) None of the above

 

ANS – A

 

53. Income accruing in India in the previous year is taxable for;

a) Resident

b) Not ordinary resident

c) Non-resident

d) All the above

 

ANS – D

 

54. Profits of `1,00,000 for the year 2019-20 of business in Germany remitted to India during the previous year 2020-21 (not taxed earlier) would be:

a) Taxable in India for ROR only

b) Not taxable in India for all

c) Taxable in India for all (ROR, RNOR and NR)

d) Taxable only for RNOR and NR

 

ANS – B

 

55. Residential status is determined for each category of person:

a) Jointly

b) Separately

c) Both a) and b)

d) None of the above

ANS – B

 

56. A firm, AOP, etc. is said to be resident in India in any previous year if:

a) Control & management is wholly or partly in India

b) Control & management is wholly situated outside India

c) Control & management is wholly in India

d) None of the above

 

ANS – A

 

57. In case of assessee being individual, if none of the basic condition is satisfied then he will be

a) Resident in India

b) RNOR in India

c) Non-resident in India

d) ROR in India

 

ANS – C

 

58. In the following cases assessee will become resident in India in previous year:

a) if his stay in India is 182 days or more in relevant previous year

b) if his stay in India is 60 days or more in relevant PY and 365 days or more in 4 I.P.P.Y

c) either of above

d) None of the above

 

ANS – C

 

59. No person other than individual or HUF can be RNOR in India:

a) True

b) False

c) Partly true

d) None of the above

 

ANS – A

 

60. A person of Indian origin means if parents or grandparents of person were born ……… in India

a) before 1947

b) before 1857

c) before 1950

d) after 1947

 

ANS – A

 

61. Which of the following assessee may be ROR after being resident in India:

a) Individual

b) HUF

c) Company

d) Both a) and b)

 

ANS – D

 

62. Which of the following assessee may be “RNOR” in India:

a) Partnership firm

b) Joint stock company

c) Association of persons

d) Hindu undivided family

 

ANS- D

 

63. Mr. B, a Canadian citizen, comes to India for the first time during the P.Y.2016-17. During the financial years 2016-17, 2017-18, 2018-19, 2019-20 and 2020-21 he was in India for 55 days, 60 days, 90 days, 150 days and 70 days respectively. Determine his residential status for the A.Y. 2021-22.

a) Resident in India

b) RNOR

c) Non-resident in India

d) None of the above

 

ANS – C

 

64. Mr. D, an Indian citizen, leaves India on 22.11.2020 for the first time, to work as an officer of a company in France. Determine his residential status for the A.Y. 2021-22.

a) Resident &ordinarily resident in India

b) RNOR

c) Non-resident

d) None of the above

 

ANS – A

 

65. Dividend from British Co. of ` 2,00,000 received in London will be taxable in case of:

a) Resident and ordinary resident (ROR) only

b) Not ordinary resident (NOR) only

c) Non-resident (NR) only

d) ROR, NOR and NR all

 

ANS – A

 

66. Income which accrue outside India from a business controlled from India is taxable in case of

a) Resident only

b) Not ordinarily resident only

c) Both ordinarily resident and NOR

d) Non-resident

 

ANS – C

 

67. An income of 6,00,000 from profession which is set up in India but controlled from USA. The income neither accrues in India nor received in India. it will be taxable in India in the hands of

a) Resident and ordinarily resident

b) Non ordinarily resident

c) Both of the above

d) None of the above

 

ANS – C

 

68. “X” was born England. His parents were born in India in 1951 and his Grand Parents were born in South Africa. “X” in this case shall be:

a) A person of Indian origin

b) A foreign national

c) Both a) and b)

d) None of the above

 

ANS – B

 

69. Mr. Akash Tanwar has following income:

 Income from business in Germany amounting to ` 3,00,000 and half of it received in India

 Interest income of ` 1,00,000 from UK Development Bond and entire interest income was credited to a bank account in UK..

 He has a business in Bombay and entire income of ` 3,00,000 was received in UK.

 Compute his income presuming that he is ROR, RNOR and NR.

a) 7,00,000 / 4,50,000 / 4,50,000

b) 7,00,000 / 5,50,000 / 4,50,000

c) 7,00,000 / 6,00,000 / 4,50,000

d) 7,00,000 / 7,00,000 / 4,50,000

 

ANS – A

 

70. Vivek was born 2nd August, 1992 in India and he later on took the citizenship of U.S.A Neither his parents nor his grandparents were born in undivided India Vivek in this case shall be a:

a) Person of Indian origin

b) Foreign national

c) Citizen of India

d) Resident in India

 

ANS – B

 

71. Vivek was born in India in 1992. His parents were born in India 1952. His grandfather was born in Lahore in 1937 but his grand-mother was born in England in 1941. Vivek will be a:

a) Citizen of England

b) Person of Indian origin

c) Citizen of pakistan

d) Resident of Lahore

 

ANS – B

 

72. Vivek, Foreign National, but a person of India origin visited India during previous year 2020-21 for 181 days. During 4 preceding previous year he was in India for 400 days. Vivek shall be:

a) Resident in India

b) RNOR

c) Non-resident

d) None of the above

 

ANS – C

 

73. “Place of effective management” is defined in theAct to mean a place where _______ that are necessary for the conduct of the business of an entity as a whole are, in substance, made

a) key management and commercial decisions

b) key management

c) commercial decisions

 

ANS – A

 

74. A Company shall be said to be engaged in “active business outside India” if –

a) the PASSIVE INCOME is not more than 50% of its total income; and

b) less than 50% of its total assets are situated in India; and

c) less than 50% of total number of employees are situated in India or are resident in India; and

d) the payroll expenses incurred on such employees is less than 50% of its total

payroll expenditure.

e) all the above conditions are satisfied.

ANS- E

 

75. Passive income” of a company shall be aggregate of, –

a) income from the transactions where both the purchase and sale of goods is from / to its associated enterprises[AE]; and

b) income by way of royalty, dividend, capital gains, interest or rental income;

c) both A & B

d) None of the above

 

ANS – C

 

76. The guidelines for determining POEM as given in circular dated 24.01.2017 shall apply to a company having turnover or gross receipts __________ in the financial year.

a) exceeding Rs. 50 crores

b) 50 Crores or More

c) Less than 50 Crores

d) Exact 50 Crore

 

ANS – A

 

77. Company A Co. is a sourcing entity, for an Indian multinational group, incorporated in country X and is 100% subsidiary of Indian company (B Co.). The warehouses and stock in them are the only assets of the company and are located in country X. All the employees of the company are also in country X. The average income wise breakup of the company’s total income for three years is, :

i. 30% of income is from transaction where purchases are made from parties which are non-associated enterprises and sold to associated enterprises;

ii. 30% of income is from transaction where purchases are made from associated

enterprises and sold to associated enterprises;

iii. 30% of income is from transaction where purchases are made from associated

enterprises and sold to non-associated enterprises; and

iv. 10% of the income is by way of interest.

Where is the Active business?

a) Active business Situated in India

b) Active business Situated outside India

c) Active business party in India and Partly outside India

d) None of the above

 

ANS – B

 

78. The other facts remain same as that in Question 76 with the variation that A Co. has a total of 50 employees. 47 employees, managing the warehouse, storekeeping and accounts of the company, are located in country X. The Managing Director (MD), Chief Executive Officer (CEO) and sales head are resident in India. The total annual payroll expenditure on these 50 employees is of Rs. 5 crore. The annual payroll expenditure in respect of MD, CEO and sales head is of Rs. 3 crore. Where is the active Business ?

a) A Co. is not engaged in active business outside India.

b) A Co. is engaged in active business outside India.

c) Party in India and Par

 

ANS – A

 

79. The basic facts are same as in Question 76. Further facts are that all the directors of the A Co. are Indian residents. During the relevant previous year 5 meetings of the Board of Directors is held of which two were held in India and 3 outside India with two in country X and one in country Y. where is the POEM situated now?

a) The POEM of A Co. shall be presumed to be outside India

b) The POEM of A Co. shall be presumed to be in India

c) Company is Resident in India irrespective of the POEM

d) None of the above

 

ANS – A

 

80. - Profits on sale of a building in India but received in Holland – Rs. 20,000

- Pension from former employer in India received in Holland – Rs. 14,000

- Interest on U.K. Development Bonds (1/4 being received in India) – Rs. 20,000

Compute taxable Income in hands of ROR/RNOR/NR

a) ROR – 54,000, RNOR – 39,000, NR – 39000

b) ROR – 54,000, RNOR – 49,000, NR – 39000

c) ROR – 54,000, RNOR – 54000, NR – 39000

d) ROR – 54,000, RNOR – 39,000, NR – 34000

 

ANS – A

 

81. - Past untaxed foreign income brought into India during the year-Rs. 25,000

- Dividends from a German company credited to his account in Pakistan- Rs. 35,000

- Dividends declared but not received from an Indian company- Rs. 20,000

 - Agricultural income from Burma not remitted to India-Rs. 40,000

Compute Taxable income in hands of ROR/RNOR & NR

a) ROR – 95,000, RNOR –20,000, NR – 20,000

b) ROR – 1,20,000, RNOR – 40,000, NR – Nil

c) ROR – 54,000, RNOR – 60000, NR – 40000

d) ROR – 75,000, RNOR – 40,000, NR – 40000

 

ANS – A

 

82. An individual, being an Indian citizen, having total income, other than the income from foreign sources [i.e., income which accrues or arises outside India (except income from a business controlled from or profession set up in India) and which is not deemed to accrue or arise in India], exceeding ` 15 lakhs during the previous year would be deemed to be _________ in India in that previous year, if he is not liable to pay tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature

a) Resident

b) Non Resident

c) RNOR

d) None of the above

 

ANS – A

 

83. If such individual is an Indian citizen who is deemed to be resident in India

under section 6(1A) [It may be noted that a deemed resident will always be a

___________].

a) ROR

b) RNOR

c) NR

d) None of the above

ANS – B

 

84. Mr. Dey, a non-resident, residing in US since 1990, came back to India on

1.4.2019 for permanent settlement. What will be his residential status for

assessment year 2021-22?

a) RNOR

b) ROR

c) NR

d) None of the above

 

ANS – A

 

85. Aashish earns the following income during the P.Y. 2020-21:

 Interest on U.K. Development Bonds (1/4th being received in India): `

4,00,000

 Capital gain on sale of a building located in India but received in Holland: `

6,00,000

If Aashish is a resident but not ordinarily resident in India, then what will be amount of income chargeable to tax in India for A.Y. 2021-22?

a) 7,00,000

b) 10,00,000

c) 6,00,000

d) 1,00,000

 

ANS – A

 

86. Mr. Sumit is an Indian citizen and a member of the crew of an America bound Indian ship engaged in carriage of freight in international traffic departing from Chennai on 25th April, 2020. From the following details for the P.Y. 2020-21, What would be the residential status of Mr. Sumit for A.Y. 2021-22, assuming that his stay in India in the last 4 previous years preceding P.Y. 2020-21 is 365 days and last seven previous years preceding P.Y. 2020-21 is 730 days?

 Date entered in the Continuous Discharge Certificate in respect of joining

the ship by Mr. Sumit: 25th April, 2020

 Date entered in the Continuous Discharge Certificate in respect of signing

off the ship by Mr. Sumit: 24th October, 2020Mr. Sumit has been filing his income tax return in India as a Resident for the preceding 2 previous years.

(a) Resident and ordinarily resident

(b) Resident but not-ordinarily resident

(c) Non-resident

(d) Deemed RNOR

 

ANS – A

 

87. Mr. Square, an Indian citizen, currently resides in Dubai. He came to India on a visit and his total stay in India during the F.Y. 2020-21 was 135 days. He is not liable to pay any tax in Dubai. Following is his details of stay in India in the preceding previous years:

Financial Year         Days of Stay in India

2019-20                                100

2018-19                                125

2017-18                                106

2016-17                                83

2015-16                                78

2014-15                                37

2013-14                                40

What shall be his residential status for the P.Y. 2020-21 if his income (other than

income from foreign sources) is ` 10 lakhs?

(a) Resident but Not Ordinary Resident (RNOR)

(b) Resident and Ordinary Resident

(c) Non-resident

(d) Deemed Resident but not ordinarily resident

 

ANS – C

 

88. Dividend income from Australian company received in Australia in the year 2019, brought to India during the previous year 2020-21 is taxable in the A.Y.2021-22 in the case of –

(a) resident and ordinarily resident only

(b) both resident and ordinarily resident and resident but not ordinarily resident

(c) non-resident

(d) None of the above

 

ANS – D

 

89. Mr. Ramesh, a citizen of India, is employed in the Indian embassy in Australia. He is a non-resident for A.Y. 2021-22. He received salary and allowances in the Australia from the Government of India for the year ended 31.03.2021 for services rendered by him in Australia. In addition, he was allowed perquisites by the Government. Which of the following statements are correct?

(a) Salary, allowances and perquisites received outside India are not taxable in

the hands of Mr. Ramesh, since he is non-resident.

(b) Salary, allowances and perquisites received outside India by Mr. Ramesh

are taxable in India since they are deemed to accrue or arise in India.

(c) Salary received by Mr. Ramesh is taxable in India but allowances and

perquisites are exempt.

(d) Salary received by Mr. Ramesh is exempt in India but allowances and

perquisites are taxable.

 

ANS – C

 

90. Income accruing from agriculture in a foreign country is taxable in India in case of an assesses who is:

(a) ROR

(b) RNOR

(c) NR

(d) ROR &RNOR

 

ANS – A

 

91. Which Income is taxable in India to ROR Individual?

(a)Any Income accrued or Received in India

(b) Any Income accrued outside India

(c)Any Income received outside India

(d) All Incomes are Taxable

 

ANS – D

 

92. Which Income is taxable in India to RNOR Individual?

(a)Business income accruing outside India

(b) Property income accruing outside India

(c)Interest income accruing outside India

(d) Income accruing outside India if it is derived from a business controlled in India.

 

ANS – D

 

 93. X Ltd of USA borrowed money from companies in USA for doing business in India by name P Ltd. Mumbai. X Ltd paid interest of Rs. 5 lacs. Interest paid is.has:

(a) Deemed to Accrued in India

(b) Exempt from tax

 (c) Not accrue in India

(d) Taxable in USA

 

ANS – A

 

94. Remuneration for rendering services on a foreign ship is not taxable in India in the case of:

(a) Resident

(b) ROR

(c) Indian Citizen

(d) NR

 

ANS – D

 

95. Income from a business in Canada, controlled from Canada is taxable in case of .

(a) ROR

(b) RNOR

(c) NR

(d) None

 

ANS – A

 

96. When an individual be regarded as “Not an ordinary resident”?

a. If he fulfils one of the basic conditions and none of the additional condition

b. If he fulfils both basic condition and both additional condition

c. If he does not fulfil any of the basic condition but fulfils one of the additional conditions

d. If he fulfils one of the basic conditions and both of the additional conditions

 

ANS – A

 

97. In which of the following case, as per explanation to section 6(1), the period of 60 days specified in section 6(1) dealing with second basic condition is substituted by 182 days.

I. Person resident in India, leaves India during the previous year for employment purpose

II. Person resident in India, leaves India during the previous year as a member of crew of an Indian ship.

III. Person resident outside India who is citizen of India comes to visit to India in Previous Year

Select the correct answer from the options given below

a. I only

b. I and II only

c. I, II and III

d. None of the above

 

ANS – B

 

98. Which of the following section deals with “income deemed to accrue or arise in India?

a. Section 10

b. Section 8

c. Section 9

d. Section 11

 

ANS – C

 

99. Which of the following section deals with “Income deemed to be received”?

a. Section 6

b. Section 7

c. Section 8

d. Section 9

ANS – B

 

100 In which of the following case HUF said to be resident in India?

1. If the control and management of its affairs is wholly situated in India

2. If the control and management of its affairs is wholly situated outside in India

3. If the control and management of its affairs is partly situated in India

Select the correct answer from the options given below

a. (1) or (2)

b. (2) or (3)

c. (1) or (3)

d. None of the above

 

ANS – C

 

THE END

TEAM CS ASPIRANT

 

CHAPTER 3 – CLICK HERE

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