income tax question

 

please any one solve the problems

 

 

1.mr.y was sponsored by his employer in india for training in usa. He left india on 3.6.2006.he came back to india on 5.4.2007.determine his residential status for the assessment year 2009-2010 assuming that he did not go out of india previously.

2. in the following case Is the receipt taxable and of so to what extent? Give reasons for your answer: Krishna was an employee of a public sector undertaking and retired voluntarily from its services on 11.10.2006 when he was paid rs.60000 under a scheme approved by the central government.krishna claims the receipt as compensation for loss of imployment and hence a capital receipt.

Replies (2)

1. Residential status will be Ordinarily Resident. (Check that you have given dates for foreign training of 06-07.)

2. Why he want to treat that as capital receipt?

U/S 10(10c) his whole compensation amount wold be exempted.

in Q1, residence in India for PY 06-07 is more than 60 days and the conditions as to past residence are also satisfied hence he will be a resident assesse for AY 07-08.

 

In Q2, the scheme and the terms of retirement will determine the nature of the receipt and not the assessee on some arbitary basis

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