# Tricky / Exam-Frequent Points on Scope of Total Income
## 1. Standard Deduction — When to Apply
If an exam question gives Salary and House Property income (gross figures), you must apply Standard Deduction:
| Head | Old Regime | Section 115BAC (New) |
|---|---|---|
| Salary — Standard Deduction | ₹50,000 | ₹75,000 |
| House Property — Standard Deduction | 30% of NAV | 30% of NAV |
But: if the figures are given as 'Salary (computed)' or 'House Property (computed)', they are already net of standard deduction → do not deduct again.
## 2. Calculation of Stay Outside India — Two Conventions
### Convention A — Specific Dates Given
When both departure and arrival dates are given:
- Mr. X leaves India on 25th August 2025 and returns on 10th November 2025.
- Days outside India = 76 days (include both the day of leaving AND day of arrival as days outside India).
### Convention B — Period Stated as 'From … To …'
When the question reads as a period ("X's stay out of India 25th Aug 2025 to 10th Nov 2025") = 78 days (count both endpoints as fully outside India).
## 3. Foreign Business Income — Treatment Across Statuses
| Status | Foreign business controlled from India / set up in India |
|---|---|
| ROR | Taxable |
| RNOR | Taxable |
| NR | NOT taxable |
₹15 lakh limit (Deemed Resident test): While computing total income for the ₹15 lakh threshold ("income other than foreign sources"), this foreign business income (controlled from India / set up in India) IS INCLUDED.
## 4. Stay of an Individual Visiting India
If the question says "X comes to India on 10th Jan 2026 and stays for 40 days" → his stay in India = 40 days. Use this approach when only the duration is mentioned (not the date of leaving).
## 5. Interest Paid by NR — Shares vs. Business
| Scenario | Recipient ROR | Recipient RNOR | Recipient NR |
|---|---|---|---|
| NR borrows & invests in shares (other sources) in India → interest paid | Taxable | Not taxable | Not taxable |
Reason: For NR payer, only loan used for B/P in India is deemed Indian — not 'other sources'. Hence the interest is foreign income → not taxable for RNOR/NR.
## 6. Special Stay Tests — Quick Map
| Type of person | Test to apply |
|---|---|
| Indian citizen leaving India during PY for employment outside India | Only the 182 days test |
| Indian citizen / PIO visiting India during PY | Check ₹15 lakh income; then 120-day + 365-day test; also check deemed resident rule |