Income from cultivation of land in Pakistan accrues and is first received in Pakistan. Assume no connection with a business controlled or profession set up in India. Whose Indian total income…
Question and options
Income from cultivation of land in Pakistan accrues and is first received in Pakistan. Assume no connection with a business controlled or profession set up in India. Whose Indian total income includes this income under the Income-tax Act, 2025?
An individual non-resident in India
No individual taxpayer
An individual resident but not ordinarily resident in India
An individual resident and ordinarily resident in India
Answer and explanation
Agricultural income under section 2(5) of the Income-tax Act, 2025 covers only land in India, so income from land in Pakistan is ordinary foreign income. Under section 5(1)(c) it is included only for a resident who is ordinarily resident, since a not-ordinarily-resident person includes foreign income only from a business controlled or profession set up in India.
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