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From the following information, furnished by Ms. Anucampa pertaining to the financial year ended as on 31st march 2022,

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 2022-23, if she is
a. Resident and ordinary resident
b. Non resident
1) please first tell the formula and understanding of the question
2) second what are the steps to be followed to get the answer
3) please write the answer in 3 option and what can we clarify from this
option 1,2 and 3 is to be followed in A and B both

1 Answer

1 vote

Answer:

To calculate the total income for Ms. Anucampa for the relevant assessment year 2022-23, we need to consider the following items and determine whether they are included or excluded based on her residential status:

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 in Singapore, later remitted to the saving account in Bank of Maharashtra, Mumbai using the approved channels - 600000

Now, let's analyze the steps to determine the inclusion or exclusion of these items for a resident and ordinary resident (A) and a non-resident (B):

Step 1: Determine Residential Status

First, we need to establish whether Ms. Anucampa is a resident and ordinary resident or a non-resident for the relevant assessment year.

Step 2: Consideration of Specific Items

Next, we will assess each item and determine whether it should be included or excluded from the total income based on her residential status.

Step 3: Calculate Total Income

Finally, we will sum up the included items to calculate the total income for the assessment year 2022-23.

Option 1: Resident and Ordinary Resident (A)

Option 2: Non-Resident (B)

Option 3: Not Applicable

Let's now apply these steps to calculate the total income for both options (A and B).

Option A: Resident and Ordinary Resident

Short term capital gains on sale of shares in an Indian company received in Japan - Included

Dividend from a Chinese company received in China - Included

Agricultural income from land in Madhya Pradesh - Included

Dividend from PJV Ltd, an Indian Company - Included

Gross Rent from a residential property located in Singapore, later remitted to the saving account in Bank of Maharashtra, Mumbai using the approved channels - Excluded (Income from a foreign residential property is not taxable for residents)

Total Income = 10,000 + 3,000 + 5,000 + 4,745 = 22,745

Option B: Non-Resident

Short term capital gains on sale of shares in an Indian company received in Japan - Excluded (Non-residents are not taxed on capital gains arising outside India)

Dividend from a Chinese company received in China - Excluded (Non-residents are not taxed on dividend income earned outside India)

Agricultural income from land in Madhya Pradesh - Excluded (Agricultural income earned in India is not taxable for non-residents)

Dividend from PJV Ltd, an Indian Company - Excluded (Non-residents are not taxed on dividend income earned from an Indian company)

Gross Rent from a residential property located in Singapore, later remitted to the saving account in Bank of Maharashtra, Mumbai using the approved channels - Excluded (Income from a foreign residential property is not taxable for non-residents)

Total Income = 0

From this, we can clarify that:

For a resident and ordinary resident (A), the total income is INR 22,745.

For a non-resident (B), the total income is INR 0.

Please note that this is a simplified calculation based on the given information, and actual tax liabilities may vary based on specific tax laws and regulations. It is always advisable to consult a tax professional or refer to the relevant tax authorities for accurate and comprehensive tax calculations.

Step-by-step explanation:

User Fitzgeraldsteele
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