Rental income received by a foreign individual, from another foreign individual, in respect of the property situated in Delhi is taxable in the hands of :
Ordinarily Resident (OR), Not Ordinarily Resident (NOR) and Non Resident (NR)
Under Section 5 of the Income-tax Act, the scope of total income depends on residential status, but income that accrues or arises in India is taxable for every assessee, whether ordinarily resident, not ordinarily resident or non-resident.
Rental income from a house property accrues where the property is situated; here the property is in Delhi, so the income accrues in India.
The nationality of the owner and the tenant, and the place of payment, do not change this, so the rent is taxable in India in the hands of an ordinarily resident, a not ordinarily resident and a non-resident alike.
Hence, the answer is Ordinarily Resident (OR), Not Ordinarily Resident (NOR) and Non Resident (NR).
Similar Questions
Mr. X, a non-resident, earned ₹ 36,000 as interest on German Development Bonds. Of this, he received one-sixth in India. The amount to be included as interest for the computation of his Gross Total Income is
Consider the following conditions :
(a) An individual is in India for a period of 182 days in the financial year in which he is getting his salary income.
(b) An individual is in India for a period of 60 days or more during financial year in which he gets his salary and 365 days or more during 4 years immediately preceding to that financial year.
If one of the above conditions is satisfied, as per the provisions of Income Tax Act, 1961, he is :
Important Questions from Residential Status
Residential status in Indian Income Tax Act is determined for which one of the following?
- Which of the following statements is correct?
A. If a company is an Indian company, it will automatically be considered a domestic company.
B. A foreign company means a company that is not a domestic company.
C. The residential status of an Indian company can be non-resident in India.
D. The residential status of a foreign company can never be resident in India.
E. The foreign income of a resident company in India is taxable.
Choose the correct answer from the options given below: Mr. X, a non-resident, earned ₹ 36,000 as interest on German Development Bonds. Of this, he received one-sixth in India. The amount to be included as interest for the computation of his Gross Total Income is
Consider the following conditions :
(a) An individual is in India for a period of 182 days in the financial year in which he is getting his salary income.
(b) An individual is in India for a period of 60 days or more during financial year in which he gets his salary and 365 days or more during 4 years immediately preceding to that financial year.
If one of the above conditions is satisfied, as per the provisions of Income Tax Act, 1961, he is :
