[Income Received in India, Income Deemed to be Received in India, Income Accrued in India, Income Deemed to be accrued in India, Classification of Income]
Q. Explain
the concept of Indian Income as the Income-tax Act, 1961.
Ans:
Indian Income is called by various words and names. These are:
a) Income received in India
b) Income deemed to be received in India
c) Income accrued or deemed to be accrued in India
Income Received in India
The receipt of income refers to the first
occasion when the recipient gets the money. Transmission of the amount after
receipt to another place does not result in a receipt.
Income deemed to be received in India [Section 7]
Ø
Contribution
by an employer to RFP over 12% of the salary.
Ø
Interest
credited to RPF in excess of 9.5% of salary.
Ø
Transferred
balance from URPF to RPF.
Ø
Contribution
to a notified pension scheme under sec. 80CCD.
Income which is deemed to accrue or arise in India [Section 9]
a)
Income from a business connection in India.
[Sec-9(1) (i)]. In case of an NRI, the following shall not be treated as a
business connection in India:
ü Purchase of
goods for export.
ü Collection
of news and views for transmission outside India.
ü
The
shooting of cinematograph films in India if such nonresident is not a citizen
of India.
b)
Any income accrue or arise to an assessee through or
from any property, asset or source of income in India[Sec-9(1)(i)]
c)
Any income accrues or arises to an assessee through
the transfer of capital asset situated in India. [Sec-9(1)(i)]
d)
Income from Salaries earned in India or which is
payable by the government to the citizen of India for service rendered outside
India [Sec-9(1)(ii) & (iii)]
e)
Dividend paid by Indian Company outside India.
[Sec-9(1)(iv)]
f)
Interest payable by:
ü Government
ü A person who
is a resident in India except where payment is made on money borrowed
for business or profession carried on outside India.
ü A person who
is a non-resident in India provided where payment is made on money
borrowed for business or profession carried in India.
g)
Royalty Payment fees for technical services by
government or resident person[Sec-9(1)(vi)]
ü
Government
ü
A
person who is a resident in India except
where payment is made for business or profession carried on outside India.
ü
A
person who is a non-resident in India provided
where payment is made for business or profession carried in India.
h)
Fees for technical services by government or
resident person[Sec-9(1)(vii)]
ü Government
ü A person who
is a resident in India except where payment is made for business or
profession carried on outside India.
ü A person who
is a non-resident in India provided where payment is made for business
or profession carried in India.