CLASS WORK PROBLEMS ON SCOPE OF TOTAL INCOME

Q.1 Mr. Chris Gayle a Non-Resident in India for the previous year 2016-17 gives you the following information of
his income.
(1) Salary Earned and Received in India Rs.75,000
(2) Interest on Deposit from Indian Companies Received outside India Rs.25,000
(3) Dividend from German Companies Received in West Indies Rs.15,000
(4) Profit from Business at London controlled from Mumbai Rs.45,000
(5) Profit from Business at Delhi controlled from Germany Rs.50,000
(6) Interest on Bank Deposit in Australia Received there. Rs.10,000
(7) Dividend from Indian company received in London. Rs.20,000
(8) Rent from house property in New-Delhi received in London. Rs.24,000
(9) Rent from a flat at Zurich received in London. Rs.40,000
(10) Profits from Business established in India received in London. Rs.1,30,000
(11) Agricultural Income from Land at Nepal, amount received in India. Rs.1,20,000
(12) Rent from shop at Dubai, but received in India. Rs. 5,00,000
Find out the total income taxable in India according to provisions of Section 5.

Q.2 Mr. Hanumanta provides you with the following details for the P.Y. 2016-17.
Particulars Rs.
(1) Profit on disposal on property situated in India 1,400
(1/2 of the amount is received in Bangladesh).
(2) Income earned and received in Moscow. 3,400
(3) Income from House property situate in India but income is received in Germany 9,400
(4) Salary earned and received in India 15,000
(5) Interest on Bank deposits in New Zealand received there 2,000
(6) Dividend from Indian Company received in Los Angeles 4,000
(7) Income from business in London controlled from India 14,000
Compute the total income of Mr. Hanumanta as per the provisions of section V of the Income Tax Act 1961 assuming
that he is: (a) Resident and Ordinary Resident. (b) Resident But not Ordinary Resident. (c) Non-Resident.

Q.3 Determine the taxability of Mr. Naresh Chandra the following incomes in the hands of a resident and ordinarily
resident, resident but not ordinarily resident, and non-resident for the P. Y. 2016-17.
Particulars Rs.
Interest on UK Development Bonds, 50% of interest received in India 1,00,000
Income from a business in Chennai (50% is received in India) 2,00,000
Profits on sale of shares of an Indian company received in London 2,00,000
Dividend from British Company received in London 1,50,000
Profits on sale of plant at Germany 50% of Profits are received in India 1,40,000
Income earned from business in Germany which is controlled from Delhi
(Rs. 40,000 is received in India) 1,70,000
Profits from a business in Delhi but managed entirely from London 1,15,000
Rent from property in London deposited in a Indian Bank at London, brought to India 1,50,000
Interest for debentures in an Indian Company received in London 1,12,000
Fees for technical services rendered in India but received in London 1,08,000

Q.4 Determine the taxability of the following incomes in the hands of Mr. Sanjay if he is a resident and ordinarily
resident, resident but not ordinarily resident, and non-resident for the P.Y. 2016-17.
Particulars Amount
Interest on UAE Development Bonds, 50% of interest received in India 30,000
Income from a business in China (50% is received in India) 30,000
Profits on sale of shares of an Indian company received in London 30,000
Dividend from British Company received in Delhi 5,000
 Salary income received in India for services rendered in Nepal 15,000
Income from profession in India, but received in France. 10,000
Property income in Belgium (out of which Rs.6,000 was remitted to India). 9,000
Profits earned from business in Hyderabad. 8,000
Profits from a business carried on at Nepal but controlled from India. 25,000
Compute his income for assessment year 2017-18 if he is resident and ordinarily resident, Not ordinarily resident, and
Non-resident in India.

Q.5 Mr. Aakash earns the following income. Compute his total income for A.Y. 2017-18 if he is (i) resident and
ordinarily resident; (ii) resident but not ordinarily resident; (iii) non-resident.
Particulars Rs.
(1) Profits from a business in Ranchi managed from Canada 23,000
(2) Income from property in Canada received there 36,000
(3) Income from agricultural land in Nairobi received there and remitted to India later on. 33,500
(4) Interest on debentures in an Indian company received in Canada 6,200
(5) Income from profession in Canada which was set up in Patna, received there 42,000
(6) Profits earned from business in Canada which is controlled from Jamshedpur, 25% of the profits being 80,000
received in Jamshedpur
(7) Salary received in the United Kingdom from government of India for the services rendered in UK 28,000
(8) Income from agriculture in Japan. 16,000
(9) Interest received in Paris in respect of securities in German Companies 25,000
(10) Amount brought into India out of the past untaxed profits earned in Germany 34,000
(11) Pension from Employer in India received in Mauritius 60,000
(12) Rental income from Property in New York deposited by a tenant in a Foreign Branch of Indian Bank, 25,000
deposited there

Q.6 Mr. Sanjay bhandari is citizen of India. Following is the information given about his presence in India during
various financial years. Determine Residential status for AY 2017-18.

Previous Years No. Of Days Previous Years No. Of Days

2016-17 70 2009-10 105
2015-16 91 2008-09 110
2014-15 190 2007-08 112
2013-14 89 2006-07 100
2012-13 87 2005-06 91
2011-12 86 2004-05 94
2010-11 84 2003-04 97

Also determine his total income & compute tax liability for AY 2017-18 from the following information about
his income during PY 2016-17.
(1) Income from house property in London, received in India 60,000
(2) Income from floriculture 2,75,000
(3) Profits from business in Japan and managed from there (received in Japan) 1,00,000
(4) Dividend from foreign company, received in India 30,000
(5) Short term Capital gains on transfer of shares of Indian companies, sold in USA and 2,00,000
gains were received there