Pls. resolve_query in rtp q. (direct tax)

Hello, I have a query in RTP Q.16 (Direct taxes). The Q. is related to DTAA provisions. As per the answer to part (i) of the Q., Mr. Rajesh shall be deemed to be resident of the foreign country for the A.Y. 2013-14. But in part (ii) of the Q., in which it is asked that "Is Mr. Rajesh required to file the return of income for A.Y. 2013-14?" The answer is given that he has to file the return of income for A.Y. 2013-14 as he is a resident. Why this discripency is there in the Q.'s answer. or I am going wrong to understand what the Q. actually indicating? Please advise. Thanks.

Replies (5)

the first one is related to income from rubber estate and the second one is related to income from fixed deposits.....thats y there is difference...

Originally posted by : Aman

the first one is related to income from rubber estate and the second one is related to income from fixed deposits.....thats y there is difference...

But, when in the 1st part of Q., the assessee has been deemed to be resident of the foreign country for A.Y. 2013-14 then why do he mandatorily require to file his return of income u/s 139(1)? As Sec 139(1) requires every resident and ordinarily resident to file return of income, even for  any asset located outside india.

As the 1st part conclude that assessee is non resident then why in 2nd part he is mandatorily require to file a return of income u/s 139(1)?

Please clarify.

in the 1st line of the qs it is clearly stated that he is ROR in india....but for the income earned from rubber estate located outside india he will be treated as non resident in India but resident in other country,.... so that income will be taxable in other country.....and in the second part...he earns income from fixed deposit in india which is under the limit of taxability.....but he is ROR in India (as per 1st line of Qs) and has asset located outside India...so he need to files the return of Income in respect of income from FD....(Sec.139) .....................  i think now it should be clear to u....

o.k. means the assessee is ROR in India, but for the limited purpose of assets located outside India, his residential status will be judged according to DTAA provisions. Am I right now?

Thanks for the resolution.

ya....now u got it....

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