residentail status

7/31/2019 Residentail Status

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Scope of Total Income

Total income can be computed with reference toresidential status, during the previous year.

Assessee can be Resident or Non- Resident inIndia.

Individual/HUF can be Ordinary Resident / Not

Ordinary Resident/ Non- Resident.


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Residential Status of Individual

Individual can be Resident in India:-

If any one of the following two conditions are satisfied:-1. He is in India for a period amounting in all to 182 days or

more in the relevant previous year.

OR

2.He is in India for 60 days or more during the relevantprevious year and has been in India for 365 days or moreduring 4 previous years immediately preceding therelevant previous year.

Individual can be Non-Resident in India:-If none of the conditions mentioned above are

satisfied.


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Individual can be Resident in India:-Exceptions to the above two conditions:-

1.In case of an individual, who is a citizen of India andwho leaves India in any previous year for the

purpose of employment or as a member of crew ofan Indian Ship- condition no.2 shall not beapplicable.

2. 1.In case of an individual, who is a citizen of India ,

being outside India comes on a visit to India in anyprevious year- condition no. 2 shall not beapplicable.


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Individual Resident and Ordinary Resident in India:-

If both the following two conditions are satisfied:-

1. He is resident in India for at least 2 out of10

previous years immediately preceding the relevantprevious year.

AND

2.He has been in India for 730 days or more duringseven previous years immediately preceding the

relevant previous year.


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Individual Resident but Not-Ordinary Resident inIndia:-

If any of the following two conditions are satisfied ( ornone of the following conditions are satisfied):-

1. He is resident in India for at least 2 out of10previous years immediately preceding the relevantprevious year.

OR

2.He has been in India for 730 days or more duringseven previous years immediately preceding therelevant previous year.


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Residential Status of HUF- Sec 6(2)

HUF can be Resident in India:-

HUF is resident in India if the control and managementof its affairs is situated wholly or partly in India duringthe relevant previous year.

HUF can be Non-Resident in India:-

HUF is Non-resident in India if the control andmanagement of its affairs is situated wholly outsideIndia during the relevant previous year.

Control and management refers to decisions takenregarding the affairs of HUF.


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Residential Status of HUF

HUF Resident and Ordinary Resident in India:-If Karta of HUF satisfies both the following two

conditions :-

1. He(Karta) is resident in India for at least 2 out of10previous years immediately preceding the relevantprevious year.

AND

2.He(Karta) has been in India for 730 days or moreduring seven previous years immediatelypreceding the relevant previous year.


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Residential Status of HUF

HUF Resident but Not-Ordinary Resident in India:-If any of the following two conditions are satisfied ( or

none of the following conditions are satisfied) byKarta of the HUF :-

1. He(Karta) is resident in India for at least 2 out of10previous years immediately preceding the relevantprevious year.

OR

2.He(Karta) has been in India for 730 days or moreduring seven previous years immediatelypreceding the relevant previous year.


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Residential Status of Firm/ AOP/ BOI

Firm/ BOI/ AOP can be Resident in India:-

Firm/ BOI/ AOP is resident in India if the control andmanagement of its affairs is situated wholly or partly inIndia during the relevant previous year.

Firm/ BOI/ AOP can be Non-Resident in India:-

Firm/ BOI/ AOP is Non-resident in India if the controland management of its affairs is situated whollyoutside India during the relevant previous year.

Control and management refers to decisions takenregarding the affairs of the firm.


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Residential Status of Company

Company can be Resident in India if:-

1. it is an Indian company

OR

2.during the relevant previous year control and management ofits affairs is situated wholly in India.

Company can be Non-Resident in India if:-1. it is not an Indian company

OR

2.during the relevant previous year control and management ofits affairs is situated wholly or partially in India.

Control and management refers to controlling power.

It is situated at a place where meetings of BOD are held.


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Incidence of Tax

Sr.

No.

Particulars Resident

&

Ordinarily

Resident

Resident

& Not

Ordinarily

Resident

Non-

Resident

1. Income recd. Or deemed to be recd. InIndia

yes yes yes

2. Income accrues or arises in India or

deemed to accrue or arise in India

yes yes yes

3. Income accrues or arises outside India

from business controlled from India

yes yes yes

4. Income accrues or arises outside India

from any other source

yes no no

5. Income remitted to India in the P/Y no no no

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