Residential status

Different taxable entitiesSection 6 lays down the test of residence for the following taxable entities: (a) An individual (b) A Hindu undivided family (c) A firm or association of persons or a body of individuals (d) A company & (e) every other person Different kinds of residential status Assesses are either (a) Resident in India, or Non-Resident in India. As far as Resident individuals & HUF are concerned, they can further divided in to two categories, i) Resident and ordinarily resident or ii) Resident but not-ordinarily resident. All other assesses (viz, a firm, an association of persons, a company and every other person) can simply be either a resident or a non-resident.

Residential status of an Individual [ sec. 6 ] An Individual may be (a) Resident and ordinarily resident (b) Resident but not ordinarily resident (c) Non-resident Resident in India [sec. 6(1) ]: An individual is said to be resident in India in any previous year, if he satisfies any one of the following basic condition. 1. He is in India in the previous year for a period of 182 days or more. OR 2. He is in India for a period of 60 days or more in the previous year and 365 days or more in 4 years immediately preceding the previous Year.

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2 . 2. He has been resident in India in at least 2 out of 10 previous Years immediately preceding the relevant previous year. b) Indian citizen or a person of Indian origin who comes on a visit to India during the previous year. (b) Resident but not ordinarily resident: A resident individual is treated as resident but not ordinarily resident in India if any one or both the additional conditions are not satisfied.Note: The period of 60 days in basic condition 2 above is extended to 182 days in case of a) An Indian citizen who leaves India during the previous year for the purpose of employment outside India or an Indian citizen who leaves India during the previous year as a member of the crew of an Indian ship. He has been in India for a period of 730 days or more during 7 years proceeding the relevant previous year. 6(6) ]: A resident individual is treated as resident and ordinarily resident in India if he satisfies the following two additional condition 1. or (b) Resident but not ordinarily resident (a) Resident and ordinarily resident [ sec. Non-resident: If any of the above conditions are not satisfied an individual is said to be Non-Resident in India If an individual is resident in India we can see whether he is (a) Resident and ordinarily resident.

the HUF would be treated as ‘RESIDENT AND ORDINARILY RESIDENT(HUF) Resident But Not Ordinarily Resident (HUF) If the karta or the Manager of the resident HUF does not satisfies both the additional conditions u/s 6(6) as applicable to Individuals. a) b) It is an Indian company OR During that year the control and management of its affairs is situates Wholly in India Explanation : 1) 2) An Indian company is always treated as resident in India. or AOP is said to be resident in any previous year control and management of its affairs is wholly or partly situated in India. Firm. the HUF would be treated as ‘RESIDENT But Not ORDINARILY RESIDENT(HUF) Residential status – COMPANY[section 6(3)] A Company is said to be resident in India in any previous year.Residential status-Hindu Undivided Family(HUF). control and management of its affairs is situated Wholly in India Residential status – Other assesses [section6(4)] Any other assesses is said to be resident in India in any previous year if the 3 . Association Of Persons(AOP) [section 6(2)] Resident: A HUF. or AOP is non-resident in India if control and management of its affairs is wholly situated outside India Resident and Ordinarily Resident (HUF) If the karta or the Manager of the resident HUF satisfies the additional two conditions u/s 6(6) as applicable to Individuals. during the previous year. A foreign company is resident in India only if. if. Firm. if Non-Resident : A HUF.

he goes to Kuwait and comes back on May 10. problems on determination of residential status 1. Determine her Residential status for the assessment year 2013-2014. 2. 2012. Determine his residential status for the assessment year 2013-14. He came to India on 15-10-2012 and left India on 10-01-2013. 2012 he was in India during 2008-09 to 2011-12. 5. he came to India. 3. 2011 for a visit and stays up to September 10. AOP. Mr. 60days. 2011. 4. Mr. Mr. Prior to 1st April. during the financial year 2011-12. A. Bhardwaj who is an Indian citizen working in London. it can be states that any other assessee can be treated as non-resident if the control and management of its affairs are Wholly situated outside India Note: In case of firm. 2012. On September 10. 2009-10. a cricketer comes to India in every cricketing season for the last six years. comes to India for the first time during 2006-07. 6. Mr. Determine his Residential status for the assessment year 2013-14. During the financial years 2008-09.Control and management of its affairs is wholly or partly situated in India In other words. Later she returns to India on 10-10-2012. a British national. Thereafter. she comes to India for a period of 46 days. leaves India for the first time to take up employment in Kuwait. He visits India every year for a period from 1 st April to 10th July. 80days. Pradeep Kumar. on April 10. Find out his residential residential status for the assessment year 2013-14. 7. He was in India for more then 365 days in the preceding four previous years. He was in India through out the financial year 2012-2013. Determine his Residential status for the assessment year 2013-14. Mr. Augustin. 2011-12 and 2012-13 he is in India for 55days. a Malasian citizen leaves India. 160days and 70days respectively. They need not fulfill any other conditions. company and other assesses. peter is a foreign citizen. on September 20. 2010-11. after a period of 10 years stay on 01-06-2010. once such an assessee is is resident it will automatically become “RESIDENT AND ORDINARILY RESIDENT”. came on a visit to India on 12 th December. Determine his residential status for the assessment year 2013-14. an Indian citizen. Thus the concept of R but NOR does not exist in above mentioned assessesses. Louis Waugh. Find out his Residential status for the assessment year 2013-14. 2010. 2011. He stays India thereafter. a Canadian citizen visits India for the first time on 06-04-2011. 4 . Ms Melissa.

Determine his Residential status for the assessment year 2013-14 . 2012. John. 20013 when he left for England. an Indian citizen receives appointment as a supervisor in a oil company in Kuwait. Mr. 2012. Rajesh came to India for the first time from America o 1 st oct. Determine his Residential status for the assessment year 2013-14. Since the day of his arrival he stayed at Mumbai till 24th Dec. on September 28. for the first time to rake up the job in Kuwait. 9. 5 . He leaves India.2012 and thereafter in Goa till 15th April.8. Mr.

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