CA Intermediate · Taxation · Basic Concepts
Mr. Imran Qureshi, an Indian citizen, earned Rs 3,00,000 from a business in Dubai which was controlled from Dubai and the amount was received in Dubai. His income of Rs 4,00,000 accrued in India. He is a non-resident for tax year 2026-27. Under the Income-tax Act, 2025, what is the total income of Imran taxable in India?
Imran's taxable income in India is Rs 4,00,000. As a non-resident, he is taxed only on income received in India or accruing in India. The Rs 3,00,000 from a Dubai business controlled and received abroad falls outside the Indian tax net.
- ARs 7,00,000
- BRs 3,00,000
- CRs 4,00,000Correct
- DRs 1,00,000
Explanation
A non-resident is taxed only on income received or deemed received in India, or accruing or arising or deemed to accrue or arise in India. The Dubai business income, controlled abroad and received abroad, is not taxable. Only the Rs 4,00,000 accruing in India is taxable.
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