Caa0eresidential Status

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RESIDENTIAL STATUS

Types of Residential Status


Resident and Ordinarily Resident. Resident and Not Ordinarily Resident Non-Resident

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.

Ordinarily Resident Indian


A resident shall be an Ordinarily Resident Indian if he satisfies the following conditions:
Condition A: He is a resident of India in at least 2 out of the 10 years immediately preceding the relevant previous year. AND Condition B: He has been in India for a period of 730 days (2x365) or more in 7 years immediately preceding the relevant previous year.

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.

HINDU UNDIVIDED FAMILY


HUF consist of all persons lineally descended from a common male ancestor (Joint family). Income earned by an individual member in HUF in their individual and personal capacity is taxed as their personal income. Such income is not treated as income of HUF. Thus, it is possible to have an income from a proprietary firm ( in individual capacity) as well as income from business of HUF.

RESIDENTIAL STATUS OF HUF


U/S 6(2)
In case of HUF, if control and management of its affair is wholly or partly situated in India, it will be resident in India. If control and management of its affair is wholly out in India, it will be non-resident in India.

FIRMS OR AOPS RESIDENTIAL STATUS


U/S 6(2) A partnership firm and an association of person will be resident in India if control and management of their affairs are wholly or partly situated within India during the relevant previous year. If control and management of their affairs are situated wholly outside India. It will be Non-resident in India

RESIDENTIAL STATUS OF A COMPANY


U/S 6(3)
A company incorporated in India is an Indian company. It will always be resident in India. A foreign company (i.e. company incorporated abroad), is resident in India only, if during the previous year, control and management of its affair is situated wholly in India Else it will be non-resident

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.

Incidence Of Tax For Individual & HUF NOR Residential Status OR NR


Indian Income Taxable in Taxable in India India Taxable in 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 Taxable in India India

Not taxable in India

Taxable in Taxable in India India

Not taxable in India

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

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