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Tax Residency and Liability Advice

Mr. X is an Indian citizen working for the government of India in Hong Kong. He earned Rs. 4,00,000 in salary and lost Rs. 60,000 from a property in Hong Kong. He wants to visit family in India during the tax year. He should stay in India less than 182 days to maintain his non-resident status and minimize tax liability. Mrs. Y is 25 years old with Rs. 4,50,000 income earned in India. As she meets the criteria of being an Indian citizen and her income is from an Indian source, she will be considered a resident and taxed accordingly. Mr. Z has businesses in China, the US, and India. He lost Rs

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4 views1 page

Tax Residency and Liability Advice

Mr. X is an Indian citizen working for the government of India in Hong Kong. He earned Rs. 4,00,000 in salary and lost Rs. 60,000 from a property in Hong Kong. He wants to visit family in India during the tax year. He should stay in India less than 182 days to maintain his non-resident status and minimize tax liability. Mrs. Y is 25 years old with Rs. 4,50,000 income earned in India. As she meets the criteria of being an Indian citizen and her income is from an Indian source, she will be considered a resident and taxed accordingly. Mr. Z has businesses in China, the US, and India. He lost Rs

Uploaded by

Hdkakaksjsb
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Questions

Q1. Mr. X, Indian Citizen, employed by the Govt. of India, was sent to Hong Kong on
1.06.2018 (he went outside India for the first time) on a project where he was earning a
salary of Rs. 4,00,000 per annum. He also had a property in Hong Kong where he has
loss from house property of amount Rs. 60,000 during the financial year 19-20. Mr. X,
wishes to visit his family members in India in PY 19-20. Advise Mr. X, on the basis of
residential status, for how long he should stay in India so that his tax liability is minimum
for PY 17-18.
Q2. Mrs. Y, (25 years), currently has total Income of Rs. 4,50,000 accruing in India.
Advise her on being Resident or Non-Resident, considering her tax liability for PY 19-
20. Also compute her tax liability for the year.
Q3. Mr. Z, (62 yrs), has a plant in china, US and India. He is having loss from business in
china (controlled from India) amounting Rs. 4,00,000. He also has business gain in US (controlled
from US) worth Rs. 6,00,000. He is having profits from business in India Rs. 12,00,000. Advise Z
on his Residential status for financial year 19-20. Also compute his tax liability for AY
20-21 assuming that he claims deduction to the limit specified in 80C.

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