Residential Status
Learn Resident and Tax Liability In Advance
Description
Introduction of Residential Status
Residential Status Contents :
1. How to be an Indian citizen: By birth Or By Agreement
2. Income shall be taxed or not depends upon the residential status
3. Residential status is determined separately for each previous year
4. Citizenship and residential status of a country are two separate concept
Types of Person : Like Individual, Hindu Undivided Family, Company, Firm etc
Residential status of an Individual Section 6(1)
1) Basic Conditions :
(i) If the individual stayed in India for a period of 182 days or more during relevant previous year.
(ii) If he stayed in India for a period of 60 days or more during relevant previous year and 365 days or more during 4 years immediately preceding the previous year.
2) Additional Condition Section 6(6) :
(i) He has been resident in India in at least two years out of 10 previous years immediately preceding the relevant Previous Year.
(ii) He has been in India for 730 days or more during 7 years immediately preceding the relevant Previous Year.
Types of Resident :
1. Ordinarily Resident : If he satisfies one of the basic condition and both the additional condition.
2. Not Ordinarily Resident : If he satisfies one of the basic conditions but not both the additional condition.
3. Non Resident : If any one of the basic condition are not satisfies.
Residential status of HUF
(1) Resident in India :- If control and management of the affairs is wholly or partly situated in India during relevant previous year.
(a) Resident and ordinarily resident in India:- If “Karta” of H.U.F. satisfies both the “Additional Condition” during relevant previous year.
(b) Resident but not ordinarily resident in India:- If “Karta” of H.U.F. does not satisfy both the “Additional Condition” during relevant previous year.
(2) Non Resident in India :- If control and management of affairs is wholly or partially situated outside India during relevant previous year.
Residential status of Firm, Local Authority, AOP, BOI, and AJP
(1) Resident in India :- If control and management of affairs is wholly or partly situated in India during relevant previous year.
(2) Non Resident in India :- If control and management of affairs is wholly situated outside India.
Residential status of Company
(1) Indian Company:- It is always resident in India.
(2) Foreign Company :- (i) Resident in India:- If control and management of its affairs is situated wholly in India during relevant previous year.
(ii) Non Resident in India :- If control and management of its affairs is situated wholly or partly outside India.
Types of Company
Incidence of Tax according to Residential Status Section 5
What You Will Learn!
- Meaning of Residential Status
- Types of Resident
- Types of Person
- Residential status of an Individual Section 6(1)
- Conditions : Basic Condition and Additional Condition
- Ordinarily Resident, Not - Ordinarily Resident, Non Resident
- Residential status of HUF
Who Should Attend!
- Any Student who pursuing in B,com M,com BBA MBA 11th & 12th Commerce C.A. C.S. and C.M.A.