Assignment – 1

Direct Tax
1. X, a chief executive of a company had undertaken foreign tour on various occasions for company’s
work and was out of India for a total number of 225 days during the previous year ending March 31,
2017. He submits his return of income for the assessment year 2017-18 in the status of non- resident.
Is he justified? He visited a foreign country for the first time during May 2015.
2. During his 196 days’ stay in India in the previous year 2016-17, X , a citizen of U.K, is all the time
moving from one place to another. He claims that he is non-residents in India for the assessment year
2017-18 on the following grounds:-
(i) He had never visited India before April,2016
(ii) During 2016-17, though he is in India for 196 days, he could not spend two consecutive nights
at any one place.
(iii) For the assessment year 2017-18, he is resident in U.K according to the English Income tax Act.
He insists that cannot be resident of two countries for the same assessment year? Do you
agree?

3. X, after 30 years’ stay in India, returns to America on January 29, 2014. He returns to India in June,
2016 to join an American company as its overseas branch manager. Determine his residential status for
the assessment year 2017-18.

4. An Indian citizen, who is appointed as senior Taxation Officer by the Govt. of India, leaves India for the
first time on September 10, 2015 for joining his duties in Iran. During the previous year 2016-17, he
comes to India on a visit for 181 days. Determine the residential status of X for the assessment year
2016-17 and 2017-18.

5. X is a foreign citizen (not being a person of Indian origin), since 1981, he visits India every year in the
month of April for 100 days. Find out the residential status of X for the assessment year 2017-18.

6. The Head office of XY, a Hindu Undivided Family, is situated in Hong Kong. The family is managed by Y
(since 1980) who is resident in India in only 3 out of 10 years preceding the previous year 2016-17 and
he is present in India for more than 729 days during last 7 years. Determine the residential status of
the family for assessment year 2017-18 if the affairs of the family’s business are (a) wholly controlled
from Hong Kong (b) partly controlled from India.

7. Give the conclusion – whether the following income are taxable for the assessment year 2017-18 if the
assesse is (a) Resident and ordinarily Resident (b) Resident but not ordinarily Resident and (c) Non
Resident
(i) Rental income of Rs. 36,000 is received in India on May 10, 2016 ( it may accrue outside India or
in india)
(ii) Interest income of Rs. 46,000 accrues in India on March 31st , 2017.
(iii) Income of Rs. 56,000 is deemed to be received in India on April 20, 2016.
(iv) Income of Rs. 66,000 is deemed to accrue or arise in India during the previous year 2016-17
(v) Business income / professional income of Rs. 76,000 is received and accrued outside India
during the previous year 2016-17. Business is controlled from outside India or profession is
setup outside India.
(vi) Profit earned from a business controlled from India or Profession is set up in india.
(vii) Rental income or salary income or interest of Rs. 86,000 is received outside India in the
previous year 2016-17 and at the same time it accrues or arise outside India.
(viii) Gift of Rs. 2 Lakh received outside India by an individual on November 6, 2016 from a friend.
(ix) Gift of Rs. 1 lakh received in Delhi by an individual on November 30, 2016 from a friend.
(x) Income of Rs. 96,000 earned and received outside India in 2011-12 but later on remitted to
India in 2016-17.