Residential Status of Individual in India
This article is about residential status in India. This article is based on residential status as per income tax act 1961. This article is used to determine residential status of person in India. Provisions consist in this article is applicable to India.
Residential Status of Individual
Introduction
The taxability of income is depending upon the residential status of an individual as per the Income tax act 1961. The residential status of an individual is determining every year separately. For the purpose of payment of tax assessee is classified into three categories are as follows;-
a) Resident and ordinary resident
b) Resident but not ordinary resident
c) Non-resident
According to following provisions given below, the residential status of an individual is to be determined:-Residential status of an Individual [u/s 6(1)]
An individual is said to be resident in India during the previous year, if he satisfies one of the two basic conditions given below:-Basic conditions
1) He is in India for a period of 182 days or more during the relevant previous year
OR
2) He is in India for a period of 60 days or more during the relevant previous year and 365 days or more in 4 years immediately preceding the relevant previous year.Ordinary Resident
An individual is said to be ordinary resident in India during the previous year, if he satisfies both the additional conditions given below:-
1) He is in India for a period of 730 days or more in 7 years immediately preceding the relevant previous years.
2) His residential is that, he is resident atleast 2 out of 10 years preceding the relevant previous year.Residential status of Hindu Undivided Family (HUF) [u/s 6(2)]
Control and management of HUF business is wholly or partly situated in India during the previous year, then HUF is said to be resident in India during the relevant previous year.Ordinary Residential status of HUF
HUF is said to be an ordinary resident in India during the previous year, if Karta or Manager of HUF satisfies both the conditions given below:-
1) He is in India for a period of 730 days or more in 7 years immediately preceding the relevant previous years.
2) His residential is that, he is resident atleast 2 out of 10 years preceding the relevant previous year.Residential Status of Firm/AOP
If control and management of Firm/AOP is wholly or partly situated in India during the previous year, is said to be resident in India during the relevant previous year.Residential Status of Company [u/s 6(3)]
Indian company is always resident in India. Company registered under company act 1956 is always Indian resident irrespective of whether control and management is wholly or partly situated in India.
