Miss Geeta, a citizen of India, got married to Mr. Peter of Australia and left India for the first time on 20.8.2023. She has not visited India…

Miss Geeta is said to be resident if she satisfies any one of the following basic conditions: (i) Has been in India during the previous year for a total period of 182 days or more (or) (ii) Has been in India during the 4 years immediately preceding the previous year for a total period of 365 days or more and has been in India for at least 60 days during the previous year. Miss Geeta's stay in India during the P.Y.2023-24 is 142 days [30+31+30+31+20] which is less than 182 days. However, her stay in India during the P.Y.2023-24 exceeds 60 days. Since, she left India for the first time, her stay in India during the four previous years prior to P.Y.2023-24 would be more than 365 days. Hence, she is a resident for P.Y.2023-24. Further, Miss Geeta would be “Resident and ordinarily resident” in India in during the previous year 2023-24, since her stay in India in the last seven previous years prior to P.Y.2023-24 is more than 729 days and she must be resident in the preceding ten years. Computation of business income and agricultural income of Miss Geeta for A.Y. 2024-25 Particulars Income ₹ Business Income ₹ Agricultural Income ₹ (i) Income from sale of centrifuged latex processed from rubber plants grown in Kanyakumari (Apportioned between business and agricultural income in the ratio of 35:65 as per Rule 7A of Income-tax Rules, 1962) 1,50,000 52,500 97,500 (ii) Income from sale of coffee grown, cured, roasted and grounded in Colombo and received in Chennai [See Note 1 below] 5,00,000 5,00,000 - (iii) Income from sale of tea grown and manufactured in West Bengal (Apportioned between business and agricultural income in the ratio of 40:60 as per Rule 8 of the Income-tax Rules, 1962) 12,00,000 4,80,000 7,20,000 (iv) Income from sapling and seedling grown in a nursery at Cochin. Basic operations were not carried out on land [See Note 2 below] 2,00,000 - 2,00,000 20,50,000 10,32,500 10,17,500 Notes: (1) Since Ms. Geeta is resident and ordinarily resident in India for A.Y. 2024-25, her global income is taxable in India. Entire income from sale of coffee grown, cured, roasted and grounded in Colombo is taxable as business income since such income is earned from sale of coffee grown, cured, roasted and grounded outside India i.e., in Colombo. (2) As per Explanation 3 to section 2(1A), income derived from sapling or seedlings grown in a nursery would be deemed to be agricultural income, whether or not the basic operations were carried out on land. Hence, income of 2,00,000 from sapling and seedling grown in a nursery at Cochin is agricultural income.