3 MO | RESIDENCE AND TAX LIABILITY BASIS OF CHARGE Which income side India or at both pl uch a taxpayer has India or outs ee, dential status of an An assessee may earn his income in tus in a particular financial year. dia depends on the resi is assessable in Int to pay tax according to his residential statRESIDENCE AND TAX LIABILITY Explanation 1 : Es @ An individual who is a c purpose of employment or in India for at least 18: If any citizen of Indi ptions to the above rules of 60 days’ stay in India n of India and leaves India in any p ber of ew of an Indian ship must hav: during the previ ar instead of 60 days; foreign national of Indian origin, whois living outside India, comes on a visit to India in the previous year, he must have stayed India for at tesst 120 da: lift tot al income (other t than income from(COME TAX n order to fee lassified as not ordinarily resident an individual res dent has der to by i ily an ind! al resi heh iain Jess than two out of the ten previous years ( 730 days during the seven Tt means that i 1 i that either he has been resident in India a Seening the relevant previous year or has been in India for less tha ae ane ae a aetna, Eee 3Not-ordinarily resident” in India in any of the In other words, an individual is sav ( ious year if: sae) : Gy # has been a non-resident in India in nine out of the te that year, or : eee : ae (ii) he is during the seven years preceding that year been in India for amped 0 periods amounting in all to, seven hundred and twenty-nine Ul } i (ii) A citizen of India, or a person of Indian origin, having total ance ne from foreign sources, exceeding t 15 lakh during the previous yea ee India for a period or periods amounting in all to 120 days or more days, or (iv) A ivan of India who is classified as deemed to be resident u/s 6( Note ; Income from foreign sources means income w! r arises outside India. (exee ‘business controlled in India or profession set up in India which is not deemed to acer Since the incidence of tax is lesser in the cast of a not ordinarily an ordinarily resident it is for the assessee to prove that he does not Sa ‘additional conditions in order to be called Not-ordinarily Resident. 4 > Ill, Non-resident Ifan individual satisfies none of the aforesaid basic conditi¢ head ‘Resident’ he is said to be Non-resident. In this case, additi HINDU UNDIVIDED FAMILY, FIRM OR ASSOCIATE > |. Resident A Hindu Undivided Family, firm or Association of Pert previous year if the control and management of its affairs during the relevant previous year, i.c., even ifa part of thei in India during the previous year, they will be called resi ordinarily resident only when its Karta resident as an individual. In this context, the clause ‘control and management ‘control and management of affairs’ mean de facto and) manage. The place of control and management is the place power are situated. It is not necessary that the control the place where the business or profession is being different from the place of its control and management, must be situated wholly outside India in order to ma > Il Not-ordinarily Resident n previous years preceding. Firm and Association of persons cannot be ‘ AHindu Undivided Family is not ordinary reid not satisfy both the following additional conditions + G@) He has been resident in India (according to two out of ten years, preceding that previous y¢ __. basic conditions to become resident for at lead (ii) He has been in India, during the seven years amounting in all to at least 730 da 8. conden ihe Words, a H.U.R is ordinarily resident onk ions. If the Kai ne ol rta satisfies ei becomes not ordinarily resident, re” OMY one or no