1. Determination of Residential
status of individual in india:-
The Residential Status of an individual is determined on the basis of period of stay of the taxpayer in India and is computed separately for each financial year.
If an individual satisfies any one of the following conditions, then he is said to be resident in India for that financial year.
The Residential Status of an individual is determined on the basis of period of stay of the taxpayer in India and is computed separately for each financial year.
If an individual satisfies any one of the following conditions, then he is said to be resident in India for that financial year.
The conditions are follows:-
CONDITION No:1 He is in India for a period of 182 days or more in that financial year
Or
CONDITION No:2 He is in india for 60 days or more
during that financial year and has been in india for 365 days or more during 4
previous years immediately preceding the relevant financial year.
If any one of the above said conditions is satisfied, the individual is said to be resident in india.
If none of the conditions is
satisfied, he is said to be a Non Resident Indian (NRI)
ORDINARY RESIDENT & NON ORDINARY RESIDENT:-
Section 6(6):- a person shall be not ordinary resident in india if he satisfies any one of the following conditions:-
1. He has been a non-resident (in the manner computed above) in 9 out of 10 years immediately preceding the financial year
If any one of the above conditions is satisfied then the person is said to be resident on India but not-ordinary resident in India. However, if none of the above conditions is satisfied, then the person is said to be Resident of India and Ordinary Resident in India.
EXCEPTIONS TO RESIDENTIAL STATUS ARE:-
Section 6(6):- a person shall be not ordinary resident in india if he satisfies any one of the following conditions:-
1. He has been a non-resident (in the manner computed above) in 9 out of 10 years immediately preceding the financial year
or
2. He has been in india for a period of 729 days or less in 7 previous years immediately proceding the financial year.
If any one of the above conditions is satisfied then the person is said to be resident on India but not-ordinary resident in India. However, if none of the above conditions is satisfied, then the person is said to be Resident of India and Ordinary Resident in India.
EXCEPTIONS TO RESIDENTIAL STATUS ARE:-
1.
In
case of an individual, who is a citizen of India and who leaves India in
any financial year of the purpose of employment outside india the 2nd condition stated above shall not be applicable and only the 1st condition of 182days or more would be applicable.
any financial year of the purpose of employment outside india the 2nd condition stated above shall not be applicable and only the 1st condition of 182days or more would be applicable.
2.
In
case of an individual who is a citizen of India or is a person of Indian origin
and who being outside India comes on a visit to india in any financial year,
the 2nd conditions stated above shall not be applicable and only the
1st condition of 182 days or more would be applicable.
Classification of ordinary resident & non ordinary resident:-
As per Section 6(6) :- a person shall be not ordinary resident in india
if he satisfies any one of the following conditions:-
CONDITION
No:1 :- He has been a non-resident (in the manner computed above) in 9 out of
10 years immediately preceding the Financial Year
Or
CONDITION
No:2 :- He has in India for a period of 729 days or less in 7 previous years
immediately preceding the financial year.
If any 1 of the above conditions is
satisfied, the person is said to be resident but not ordinary resident in
India. However, if none of the above conditions is satisfied, the person is
said to be Resident and Ordinary Resident in india.
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