Knowee
Questions
Features
Study Tools

Mr. Ramesh, a citizen of India, is employed in the Indian embassy in Australia. He is anon-resident for A.Y. 2023-24. He received salary and allowances in Australia from theGovernment of India for the year ended 31.03.2023 for services rendered by him inAustralia. In addition, he was allowed perquisites by the Government. Which of thefollowing statements are correct?(a) Salary, allowances and perquisites received outside India are not taxable in thehands of Mr. Ramesh, since he is non-resident.(b) Salary, allowances and perquisites received outside India by Mr. Ramesh aretaxable 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 perquisitesare exempt.(d) Salary received by Mr. Ramesh is exempt in India but allowances and perquisitesare taxable

Question

Mr. Ramesh, a citizen of India, is employed in the Indian embassy in Australia. He is anon-resident for A.Y. 2023-24. He received salary and allowances in Australia from theGovernment of India for the year ended 31.03.2023 for services rendered by him inAustralia. In addition, he was allowed perquisites by the Government. Which of thefollowing statements are correct?(a) Salary, allowances and perquisites received outside India are not taxable in thehands of Mr. Ramesh, since he is non-resident.(b) Salary, allowances and perquisites received outside India by Mr. Ramesh aretaxable 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 perquisitesare exempt.(d) Salary received by Mr. Ramesh is exempt in India but allowances and perquisitesare taxable

...expand
🧐 Not the exact question you are looking for?Go ask a question

Solution

The correct statement is (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.

Here's why:

According to the Income Tax Act, 1961 of India, salary paid by the Government of India to an Indian citizen for services rendered outside India is deemed to accrue or arise in India. This is applicable even if the individual is a non-resident during the relevant financial year. Therefore, Mr. Ramesh's salary, allowances, and perquisites received in Australia from the Government of India for services rendered in Australia are taxable in India.

This problem has been solved

Similar Questions

Foreign income received in India during the previous year is taxable in the case of ________.Select one:a.Non residentb.residentc.not ordinarily residentd. all of the above

Statement I. Compensation income includes salary, honoraria, allowances,separation pay, and retirement pay.Statement II. Representation and travelling allowances that are fixed in amount arenot taxable.Select one:a.Only Statement mpensation income includes salary, honoraria, allowances,separation pay, and retirement pay is correctb.Both statements are correctc.Neither statement is correctd.Only Statement Representation and travelling allowances that are fixed in amount arenot taxable is correct

Mr. A received the following from his employer during the current taxable year: Monthly basic salary, P45,000 Monthly representation and travelling allowance not subject to liquidation, P10,0005% commission on net sales. Sales during the year were P6,300,000; sales return, P250,000 13th month pay, Christmas bonus and productivity pay amounting to 120% of his basic salary The gross taxable compensation income of Mr. A for the current taxable year is:Select one:a.P1,016,500b.P986,500c.P962,500d.P841,500

Which of the following is not a resident for the purpose of estimating national income?(a) World Health Organisation located in India.(b) An Indian employed in World Health Organisation located in India.(c) Indian working in USA embassy in India.(d) An American tourist staying in India

For the members of parliament in India, who determines the salaries and allowances from time to time ?a.Ministry of Parliament Affairsb.Parliament by lawc.Cabinet secretariatd.Union cabinet

1/1

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.