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Residential Status

Residential Status. Vaibhav Banjan. Residence -Individual. An Individual is said to be resident in India in any previous year, if he satisfies at least one of the following conditions: 1) He is in India in the previous year for a period of 182 days or more.

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Residential Status

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  1. Residential Status Vaibhav Banjan

  2. Residence -Individual • An Individual is said to be resident in India in any previous year, if he satisfies at least one of the following conditions: • 1) He is in India in the previous year for a period of 182 days or more. • 2) a) He is in India for a period of 60 days or more during the previous year • and • b) 365 days or more during 4 years immediately preceding the previous year.

  3. Exception to conditions (2) • Period 60 Days is extended to 182 days in the following cases. i) An Indian citizen who leaves India during the previous year for the purpose of employment outside India ii) Indian citizen who leaves India during the previous year as a member of crew of Indian ship. iii) Indian citizen or person of Indian origin who comes on a visit to India during the previous year.

  4. A person is deemed to be of Indian origin if he, or either of his parents or any of his grand-parents was born in undivided India.

  5. Resident and Ordinarily Resident – u/s 6(6) • Individual is treated as Resident and Ordinarily Resident in India if he satisfies the following additional conditions: i) He has been resident in India in at lest 2 out of 10 previous year immediately preceding the previous year. ii) He has been in India for a period of 730 days or more during 7 years immediately preceding the relevant previous year.

  6. Resident and Not Ordinarily Resident – u/s 6(6) • Individual who satisfies at least one of the basic conditions u/s 6 (1) but does not satisfy the additional conditions under u/s 6 (6)

  7. Non Resident • Individual who does not satisfy at least one of the basic conditions u/s 6 (1).

  8. Hindu Undivided Family: u/s 6(2) • A Hindu undivided family is said to be resident in India if control and management of its affairs is wholly or partly situated in India. • A Hindu undivided family is said to be non-resident in India if control and management of its affairs is situated wholly outside India. • Residential status of Karta is considered for determining whether a Resident family is ordinarily Resident.

  9. Firm and Association of Person.: u/s 6(2) • A partnership firm and a association of persons are said to be resident in India if control and management of their affairs are wholly or partly situated within India during the relevant previous year. • They are, however, treated as Non Resident in India if control and management of their affairs are situated wholly outside India.

  10. Company u/s 6 (3) • Indian company is always resident in India. • Foreign company is resident in India only if, during the previous year, control and management of its affairs is situated wholly in India. • Foreign company is Non resident in India only if, during the previous year, control and management of its affairs wholly or partly situated out of India.

  11. Residential Status of Every Other Person • Every Other person is said to be resident in India if control and management of his affairs are wholly or partly situated within India during the relevant previous year. • However they are treated as Non Resident in India if control and management of their affairs are situated wholly outside India.

  12. Scope of Total Income : • ROR RNOR NR Indian Income Income Received in India T T T Income Accrued in India T T T Income Deemed to be received in India T T T Income Deemed to Accrue in India T T T

  13. Foreign Income Income from Business is controlled from India T T NT Income from Profession set up in India T T NT Income from Business is controlled outside India T NT NT Income from Profession set up outside India T NT NT Other Foreign Income ( Rent, Interest etc.) T NT NT

  14. Income Deemed to Accrue or Arise in India • Income from house property (residential or commercial) in India • Income from any other asset in India • Capital gain from asset located in India • Income from business connection in India • Salary from services rendered in India • Salary from services rendered by a citizen for government of India outside India • Interest income or royalty/fee income from government of India • Interest income or royalty/fee income received from a resident Indian (for purpose other than overseas business) • Interest income or royalty/fee income received from a non-resident Indian for running business in India

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