Income received and accrued or arisen outside India from a business controlled in or a profession set up in India, is taxed in the hands of which of the following?

a. Every citizen of India

b. Domicile of India

c. Ordinary Resident

d. Non-Ordinarily Resident

e. Non-Resident

Choose the correct answer from the options given below:

The correct answer is c and d only.

Key Points The correct answer is option c. Ordinary Resident and option d. Non-Ordinarily Resident.

Under the Indian income tax laws, income received and accrued or arisen outside India from a business controlled in or a profession set up in India is taxed in the hands of both Ordinary Residents and Non-Ordinarily Residents.

An Ordinary Resident is an individual who satisfies either of the following conditions:

• The individual is present in India for a period of 182 days or more during the relevant tax year, or
• The individual is present in India for a period of 60 days or more during the relevant tax year and has been in India for a total of 365 days or more during the 4 previous years preceding the relevant tax year.
• A Non-Ordinarily Resident (NOR) is an individual who does not meet the conditions to be considered an Ordinary Resident.

Therefore, both Ordinary Residents and Non-Ordinarily Residents are liable to pay tax on income received and accrued or arisen outside India from a business controlled in or a profession set up in India.