Question

Income which accrue or arise outside India but are directly received into India are taxable in case of

• A. Residents only
• B. Both ordinarily residents and non-resident
• C. Non-resident
• D. All the assessees

Hint:

Residents are taxed on global income; non-residents only on Indian income.

Answer 1

The Correct Option is A

Step 1: Income Tax principle.
Tax incidence depends on residential status (Sec. 5 of Income Tax Act).

Step 2: Rule.
- Residents: Taxable on global income.
- Non-residents: Taxable only on income accrued/received in India.

Step 3: Application.
If income accrues abroad but is received directly in India, it is taxable for residents.

Step 4: Conclusion.
Answer is (A).