Difference between capital and revenue receipts

CAPITAL RECEIPTS	REVENUE RECEIPTS
1. Source:-
Capital receipt is the amount received from the sale of:-             Assets,             Shares and              Debentures.	Revenue receipt is the amount received from the sale of:-             Goods and              Services.
2. Nature:-
Capital receipt is of non-recurring nature.	Revenue receipt is of recurring nature.
3. Impact:-
Main items of capital receipt are capital and loan, which affect financial position of the business.	Main items of revenue receipt are sale of merchandise, discount and commission, which affect operating results of the business.
4. Treatment:-
Capital receipt is shown on the liabilities side of the balance sheet.	Revenue receipt is shown on the credit side of the trading and profit and loss accounts.

Residentil status of individual

1.      Determination of Residential status of individual in india:- 
The Residential Status of an individual is determined on the basis of period of stay of the taxpayer in India and is computed separately for each financial year.

If an individual satisfies any one of the following conditions, then he is said to be resident in India for that financial year.

The conditions are follows:-

CONDITION No:1 He is in India for a period of 182 days or more in that financial year

Or

CONDITION No:2 He is in india for 60 days or more during that financial year and has been in india for 365 days or more during 4 previous years immediately preceding the relevant financial year.

If any one of the above said conditions is satisfied, the individual is said to be resident in india.

If none of the conditions is satisfied, he is said to be a Non Resident Indian (NRI)

ORDINARY RESIDENT & NON ORDINARY RESIDENT:-

Section 6(6):- a person shall be not ordinary resident in india if he satisfies any one of the following conditions:-

1. He has been a non-resident (in the manner computed above) in 9 out of 10 years immediately preceding the financial year

or

 2. He has been in india for a period of 729 days or less in 7 previous years immediately proceding the financial year.

If any one of the above conditions is satisfied then the person is said to be resident on India but not-ordinary resident in India. However, if none of the above conditions is satisfied, then the person is said to be Resident of India and Ordinary Resident in India.
 

EXCEPTIONS TO RESIDENTIAL STATUS ARE:-

1.      In case of an individual, who is a citizen of India and who leaves India in

4.3 TAXATION LAW (SV UNIVERSITY OLD QUESTIONPAPER)

Taxation Law-2014 Sep page 1	Taxation Law-2014 Sep page 2
Taxation Law-2013 Jun page 1	Taxation Law-2013 Jun page 2