Residential StatusResidential Status

Residence -IndividualResidence -Individual

• An Individual is said to be resident in India An Individual is said to be resident in India in any previous year, if he satisfies at least in any previous year, if he satisfies at least one of the following conditions:one of the following conditions:

• A) He is in India in the previous year for a A) He is in India in the previous year for a period of 182 days or more.period of 182 days or more.

• B) He is in India for a period of 60 days or B) He is in India for a period of 60 days or more during the previous year and 365 more during the previous year and 365 days or more during 4 years immediately days or more during 4 years immediately preceding the previous year.preceding the previous year.

Exception to conditions (b)Exception to conditions (b)

• Period 60 Days is extended to 182 days Period 60 Days is extended to 182 days in the following cases.in the following cases.

i) An Indian citizen who leaves India i) An Indian citizen who leaves India during the previous year for the during the previous year for the purpose of employment outside Indiapurpose of employment outside India

ii) Indian citizen who leaves India during ii) Indian citizen who leaves India during the previous year as a member of crew the previous year as a member of crew of Indian ship.of Indian ship.

iii) Indian citizen or person of Indian origin iii) Indian citizen or person of Indian origin who comes on a visit to India during the who comes on a visit to India during the previous year.previous year.

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

Resident and Ordinarily Resident and Ordinarily Resident – u/s 6(6)Resident – u/s 6(6)

• Individual is treated as Resident and Individual is treated as Resident and Ordinarily Resident in India if he satisfies Ordinarily Resident in India if he satisfies the following additional conditions:the following additional conditions:

i) He has been resident in India in at lest 2 i) He has been resident in India in at lest 2 out of 10 previous year immediately out of 10 previous year immediately preceding the previous year.preceding the previous year.

ii) He has been in India for a period of 730 ii) He has been in India for a period of 730 days or more during 7 years immediately days or more during 7 years immediately preceding the relevant previous year.preceding the relevant previous year.

Resident and Not Ordinarily Resident and Not Ordinarily Resident – u/s 6(6)Resident – u/s 6(6)

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

• Non Resident Non Resident

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

Hindu Undivided Family: u/s Hindu Undivided Family: u/s 6(2)6(2)

• A Hindu undivided family is said to be A Hindu undivided family is said to be resident in India if control and management resident in India if control and management of its affairs is wholly or partly situated in of its affairs is wholly or partly situated in India. India.

• A Hindu undivided family is said to be non-A Hindu undivided family is said to be non-resident in India if control and management resident in India if control and management of its affairs is situated wholly outside India.of its affairs is situated wholly outside India.

• Residential status of Karta is considered for Residential status of Karta is considered for determining whether a Resident family is determining whether a Resident family is ordinarily Resident.ordinarily Resident.

Firm and Association of Firm and Association of Person.: u/s 6(2)Person.: u/s 6(2)

• A partnership firm and a association of A partnership firm and a association of persons are said to be resident in India if persons are said to be resident in India if control and management of their affairs control and management of their affairs are wholly or partly situated within India are wholly or partly situated within India during the relevant previous year. during the relevant previous year.

• They are, however, treated as Non They are, however, treated as Non Resident in India if control and Resident in India if control and management of their affairs are situated management of their affairs are situated wholly outside India.wholly outside India.

Company u/s 6 (3)Company u/s 6 (3)

• Indian company is always resident in India.Indian company is always resident in India.

• Foreign company is resident in India only Foreign company is resident in India only if, during the previous year, control and if, during the previous year, control and management of its affairs is situated management of its affairs is situated wholly in India.wholly in India.

• Foreign company is Non resident in India Foreign company is Non resident in India only if, during the previous year, control only if, during the previous year, control and management of its affairs wholly or and management of its affairs wholly or partly situated out of India.partly situated out of India.

Residential Status of Every Residential Status of Every Other PersonOther Person

• Every Other person is said to be Every Other person is said to be resident in India if control and resident in India if control and management of his affairs are wholly or management of his affairs are wholly or partly situated within India during the partly situated within India during the relevant previous year. relevant previous year.

• However they are treated as Non However they are treated as Non Resident in India if control and Resident in India if control and management of their affairs are situated management of their affairs are situated wholly outside India.wholly outside India.

Scope of Total Income :Scope of Total Income :

• RORROR RNOR RNOR NRNR

• Indian IncomeIndian IncomeIncome Received in India Income Received in India T T T T T TIncome Accrued in India Income Accrued in India T T T T T T Income Deemed to be Income Deemed to be received in India received in India Taxable Taxable T T T T T T

Income Deemed to Accrue inIncome Deemed to Accrue inIndia T India T T T T T

Foreign IncomeForeign Income

Income from Business is controlledIncome from Business is controlled from India T T NTfrom India T T NTIncome from Profession Income from Profession set up in India T T NT set up in India T T NT

Income from Business is controlled Income from Business is controlled outside India T NT NToutside India T NT NTIncome from Profession set upIncome from Profession set upoutside India T NT NToutside India T NT NTOther Foreign Income Other Foreign Income ( Rent, Interest etc.)( Rent, Interest etc.) T NT NT T NT NT