AIBE III 2012 Question 91 Answer

AIBE III 2012 Question 91

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Question 91 of 100 AIBE III 2012 Set Common

A, a non-resident Indian, buys land in Chennai for Rupees Ten lakhs. After two months, A sells it for Rupees Fifteen lakhs. However, A gets only Rupees Twelve lakhs from the buyer of the land. Which of the following Statements most accurately applies the principle below?

A A's income from the sale of the land is not taxable, as A is not resident in India.
B A's total income from the sale of the land is taxable, as Rupees Fifteen lakhs has accrued to A at the time of the sale. Official answer
C A can be taxed on Rupees Twelve lakhs received from sale of the land as it was received in India, but not on the Rupees Three lakhs as A is yet to receive that amount.
D A can be taxed on Rupees Twelve lakhs received from the sale of the land, as A has purchased land and is now a resident of India, but not on the Rupees Three lakhs as A is yet to receive that amount.
E A's income from the sale of the land is not taxable, as no debt has been created in A's favour, and hence, no income has accrued to A.