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 –
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