From the following information, furnished by Ms. Anucampa pertaining to the financial year ended as on 31st march 2021, Short term capital gains on sale of shares in an Indian company received in Japan 10000 Dividend from a Chinese company received in China 3000 Agricultural income from land in Madhya Pradesh 5000 Dividend from PJV Ltd an Indian Company 4745 Gross Rent from a residential property located at Singapore, later on remitted to the saving account in Bank of Maharashtra, Mumbai using the approved channels 600000 Compute the total income and give reason for considering/ not considering these specific items for the relevant assessment year 2021-22, if she is
a. Resident and ordinary resident
b. Non resident
Total income = Revenue – Cost of Goods Sold – Expenses
In this case;
Total income = Sale of shares + Dividend received + Agricultural income + Dividend from
PJV Ltd + Gross Rent - Expenses.
= 10000 + 3000 + 5000 + 4745 + 600000 - 0
= 622745 .
Reason for considering;
Residence designation is a matter of actuality, and it is one of the essential factors in determining an agency's or group's tax compliance and repercussions. In terms of any advantages or profits earned in or obtained in a particular nation, a residential and a non-resident firm are taxed identically. Individuals are placed in a consideration class based on the high value of their income, based on the calculations mentioned above.
In any preceding year, a firm will be a non-resident if: its actual managerial location is smaller than that of other corporations.