Advanced MCQs on Residential Status

Which of the following conditions must be satisfied for an individual to qualify as a resident in India for tax purposes?

• (A) Present in India for 182 days or more in the previous year.

• (B) Present in India for 60 days or more in the previous year and 365 days or more in the preceding four years.

• (C) Either (A) or (B)

• (D) Both (A) and (B)

An individual who is an Indian citizen leaving India for employment abroad is considered a resident only if present in India for:

• (A) 60 days or more in the previous year

• (B) 182 days or more in the previous year

• (C) 240 days or more in the previous year

• (D) None of the above

Which of the following incomes is taxable in India irrespective of the taxpayer's residential status?

• (A) Income earned in India

• (B) Income earned outside India but received in India

• (C) Income earned and received outside India by a non-resident

• (D) Both (A) and (B)

Which of the following individuals would be considered a non-resident in India?

• (A) An Indian citizen who visits India for 100 days in the previous year and has stayed in India for 300 days in the last four years.

• (B) An Indian citizen who stays in India for 200 days in the previous year.

• (C) A foreign national residing in India for 182 days in the previous year.

• (D) None of the above

What is the key difference between a Resident but Not Ordinarily Resident (RNOR) and a Resident and Ordinarily Resident (ROR)?

• (A) RNOR is taxed only on income earned in India.

• (B) ROR is taxed on global income.

• (C) Both (A) and (B)

• (D) None of the above

Which of the following is considered 'Income Deemed to Accrue or Arise in India'?

• (A) Interest on a fixed deposit in a foreign bank

• (B) Rent received from property located in India

• (C) Salary earned by a foreign employee working abroad

• (D) Profit on sale of foreign shares

A foreign company is treated as a resident in India if:

• (A) It has a branch in India

• (B) Its turnover in India exceeds ₹50 lakh

• (C) Its place of effective management (POEM) is in India

• (D) It pays taxes in India

Which section of the Income Tax Act defines the scope of total income?

• (A) Section 5

• (B) Section 6

• (C) Section 9

• (D) Section 10

Income earned outside India by a Resident but Not Ordinarily Resident (RNOR) is taxable if:

• (A) The income is derived from a business controlled in India

• (B) The income is transferred to an Indian bank account

• (C) The income is subject to TDS outside India

• (D) The income is earned after the individual attains RNOR status

The term 'Deemed Resident' refers to:

• (A) An individual who stays in India for at least 240 days in the previous year

• (B) A citizen of India with total income exceeding ₹15 lakh from Indian sources but residing abroad

• (C) An NRI who invests over ₹10 lakh in Indian securities

• (D) None of the above