Income-tax Rules, Rule – 10
Determination of Income in the Case of Non-Residents
- Where the Assessing Officer believes that the actual income accruing or arising to a non-resident person—whether directly or indirectly—through or from any business connection in India, any property in India, any asset or income source in India, or any money lent at interest and brought into India in cash or kind, cannot be precisely determined, the income for the purpose of income-tax assessment may be computed in the following ways:
(i) At a percentage of the turnover accruing or arising, as deemed reasonable by the Assessing Officer;
(ii) On an amount proportionate to the total profits and gains of the business of such non-resident, where such profits and gains are calculated as per the provisions of the Act, and the ratio of receipts so accruing or arising to the total business receipts;
(iii) In any other manner as the Assessing Officer considers appropriate.