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Residence and scope of total income

Direct Taxation

If interest is paid by resident(mr.A )to resident(Mr.B) for the loan take for the purpose of business or profession set up OUTSIDE INDIA. Then will such income will deemed to be accrue or arise IN INDIA for Mr. B as per section 9(1)(v)?

Swathi Krishna

CA Final

★ 8K+

21-Oct-20 10:43

345

Answers (6)

As per section 9(1)(v) If borrowed money is utilized by the payer for carrying on a business / profession outside India or for earning any income outside India, then such income is not deemed to accrue or arise in India

anil vagvala

CA Inter

★ 720

21-Oct-20 14:27

For a resident Indian income accrued or deemed to accrue or arise outside India is subject to tax in India

anil vagvala

CA Inter

★ 720

21-Oct-20 17:32

For not ordinary resident income accrued or deemed to accrue or arise outside India is subject to tax in India only if such income is derived out of some business / professional connection in India

anil vagvala

CA Inter

★ 720

21-Oct-20 17:36

For a non resident income accrued or deemed to accrue or arise in India is not subject to tax in India

anil vagvala

CA Inter

★ 720

21-Oct-20 17:37

In order to have a clear cut understanding of the above you should have conceptual clarity with regard to residential status and incidence of tax

anil vagvala

CA Inter

★ 720

21-Oct-20 17:40

Correcting for the above with regard to non resident. For a non resident income accrued or deemed to accrue or arise outside India is not subject to tax on India

anil vagvala

CA Inter

★ 720

21-Oct-20 20:55