[MBA Case Study]: Residential Status for Taxation

‘Non-resident Indian’ is an individual who is a citizen of India or a person of Indian origin and who is not a resident of India. Thus, in order to determine whether an Individual is a non-resident Indian or not, his residential status is required to be determined for taxation. As per Income-tax Act, an individual is said to be non-resident in India if he is not a resident in India and an individual is deemed to be resident in India in any previous year if he satisfies any of the following conditions, more.

MBA assignment questions (NMIMS and others):

A) Harish, an Indian citizen, leaves India for the first time on May 22, 2015 for
London and returns on April 9, 2017, and stays in the country thereafter.
Determine the residential status of Harish for the assessment year 2018-19?

B) During the assessment year 2018 – 19, Harish (the above mentioned person) had
the following details of income:

Particulars, Amount (Rs.)
Interest on UK Development Bonds (50% of the interest amount is received in India) -> 100000
Income from a business in Chennai -> 2000000
LTCG on sale of shares of an Indian company -> 200000
Dividend from an Indian Company -> 500000

Compute the taxable income in the hands of Harish for the AY 2018 – 19.

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