Residential Status

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