Caa0eresidential Status
Caa0eresidential Status
Caa0eresidential Status
An individual shall be considered a Resident of India if he fulfills any one of the following conditions:
Condition 1 He should be in India for 182 days or more during the previous year OR
Condition 2 He should be in India for 60 days or more during the during the previous year AND He should be in India for 365 days or more in 4 years immediately preceding the relevant previous year.
Exceptions
An Indian Citizen leaves India during the previous year as a crew member of a ship or For the purpose of employment outside India. An Indian Citizen or a Person of Indian Origin visits India during the previous year Then he shall be a Resident of India only if he is in India for 182 days or more.
If you satisfy any one condition from (1) & (2) and satisfy both condition (A) & (B), then your status will be Resident and Ordinarily Resident (ROR); However, if you satisfy any one condition from (1) & (2) and satisfy one or none from (A) & (B), then your status will be Resident but Not Ordinarily Resident (RNOR). If you do not satisfy any one or none from condition (1) and (2), then you are a non-resident of India.
INCIDENCE OF TAX
U/S 5
Incidence of tax of a taxpayer depends on his residential status and also on the place and time of accrual or receipt of income. Incomes can be of two types: Indian income Foreign income
INCOME TYPES
Income will be Indian income if any of the three is satisfied: If income is received or deemed to be receive in India during the previous year or at the same time it accrues or deemed to be accrue in India during the previous year. If income is received in India but accrues outside India. If income is received outside India but it accrues in India.
Income will be foreign income if the income is received outside India and it accrues outside India.
Foreign income Business Income when business is controlled wholly or partly from India Income from profession set up in India
Business Income when business is controlled from outside India Income from profession set up outside India Any other foreign Income (like rent salary interest etc.)
Taxable in Not taxable Not taxable India in India in India Taxable in Not taxable Not taxable India in India in India Taxable in Not taxable Not taxable India in India in India