Residential status- Individual
The residential status of the assessee is useful in determining the scope or chargeability of the income for the assessee, i.e., whether taxable or not. For an individual person, to be a resident, any one of the following basic conditions must be satisfied:-
- Presence of at least 182 days in India during the previous year.
- Presence of at least 60 days in India during the previous year and 365 days during 4 years immediately preceding the relevant previous year.
However, in case the individual is an Indian citizen who leaves India during the previous year for the purpose of employment (or as a member of a crew of an Indian ship) or in case the individual is a person of Indian origin who comes on a visit to India during the previous year, then only the first of the above basic condition is applicable. India origin means those person which are born in India before partition of India. To determine whether the resident individual is ordinarily resident the following both additional conditions are to be satisfied:-
- Resident in India in at least 2 out of 10 years immediately preceding the relevant previous year.
- Presence of at least 730 days in India during 7 years immediately preceding the relevant previous year.
If the individual resident satisfies only one or none of the additional conditions, then he is not ordinarily resident. (In case the person is not an individual or an HUF, then the residential status can only be either resident or non-resident)
Residential status of a person other than an individual
| Type of person | Control & management of affairs of the taxpayer is wholly in India | Control & management of affairs of the taxpayer is wholly outside India | Control & management of affairs of the taxpayer is partly in India partly outside India |
|---|---|---|---|
| HUF | Resident | Non-resident | Resident |
| Firm | Resident | Non-resident | Resident |
| Association of persons | Resident | Non-resident | Resident |
| Indian company | Resident | Resident | Resident |
| Foreign company | Resident | Non-resident | Non-resident |
| Any other person except an individual | Resident | Non-resident | Resident |
For any queries, you can contact Prof. Vipin Saboo at 9820779873
11 Comments