Taxation Exam > Taxation Notes > Fast Track Quick Revision Income Tax > Residential Status (Section 5 to 9)
Residential Status (Section 5 to 9) | Fast Track Quick Revision Income Tax - Taxation PDF Download
| Section 6 : Determination of Residential Status | |||||
| (1) | (2) | (3) | (4) | (5) | (6) |
| Ind | HUF, Firm, AOP/ BOI | Company | Local Auth. / AJP | Ind / HUF | |
| Basic Condition | Additional condition | ||||
| Satisfies | Do not satisfiy | x | Satisfies | Do not satisfy | |
| Resident | Non - Resident | R-OR | R-NOR | ||
| S 6(1) & 6(6). Determination of Residential Status of Individual. | |||
| S 6(1) : Basic Condition | |||
| If an Individual is present in India | |||
| (a) | for period or periods of atleast 182 days in the relevant PY; or | Satisfies any one basic condition | Resident in India. |
| for atleast 60 days in the relevant PY & atleast 365 days in last 4 years immediately preceding the relevant PY | |||
| (b) | Do not satisfies any basic condition | Non - Resident in India. | |
| Exceptions to the basic condition -check only 182 days | |
| (a) | If an Indian Citizen leaves India for the purpose of employment or leaves India as a crew member of Indian Ship. |
| (b) | If an Indian Citizen or Person of Indian Origin comes to India on a visit from outside India. |
| As per explanation to S 115C(e) A Person is said to be of Indian Origin if he himself or his Parents / Grandparents are borne in undivided India. Check date of birth should be before 15-8-1947 and place of birth is in India, Pakistan or Bangladesh. | |
| S 6(6) : Additional Condition | |||
| (a) | Resident in India for atleast 2 years in last 10 years immediately preceding the relevant PY; and | } | If satisfies both the Additional Condition then RS is R-OR otherwise R-NOR. |
| (b) |
Present in India for atleast 730 days in last 7 years immediately preceding the relevant PY. |
||
| Residential Status of other person | Control & Management of the affairs of the business (POEM) | |||
| S 6(2) | HUF / Firm / AOP / BOI | In India | Outside India | |
| S 6(3) | Foreign Company | Wholly / Partially | Wholly | |
| S 6(4) | Local authority / AJP | |||
| Resident | Non - Resident | |||
Note : Residential Status of Indian Company is always resident irrespective of control and management of affairs of the business.
Note : Place of effective management to mean a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance made. It simply means the place where board meetings are held or that person to whom board of directors have delegated the entire policy decision of company. E.g. Managing Director, Manager who has control and management.
| S 5. Incidence of tax | ||||||
| R - OR | R - NOR | NR | ||||
| 1. | Income which accrues or arise in India. (Indian Income) | Taxable | Texable | Texable | ||
|
2
|
Income which accrues or arise outside India. (Foreign Income) | Taxable | Not Taxable. However in case of | Not Taxable but if income is received in India then taxable. | ||
| Business Income | Professional Income | |||||
| Taxable if business is controlled from India | Taxable if Profession is set up in India | |||||
| Taxable if any income is received in India. | ||||||
| S 9(1). Income deemed to accrue or arise in India | |||
| 1. | • Income from Business Connection. Business outside India and part activity of business carried out in India. Also called permanent establishment or territorial nexus. |
Exceptions to the Business Connection. | |
| a. | All operation not carried out in India. | ||
| b. | Purchase for export. | ||
| c. | Collection of news. | ||
| d. | Shooting of film in India by foreign citizen. | ||
| • Assets located in India. | |||
| 2. | Services rendered in India by any person. | ||
| 3. |
Services rendered outside India by Indian Citizen. Employer is Govt. of India. However as per S 10(7) allowances and perquisites are exempt from tax. Only basic salary is taxable. |
||
| 4. | Dividend from Indian Company. However it is exempt from tax u/s 10(34) | ||
| 5. | Interest on Loan which is used in India. | If interest, royalty or FTS is payable by Govt. of India then such income deemed to accrue or arise in India whether there is business connection or not. | |
| 6. | Royalty from knowledge which is used in India. | ||
| 7. | Fees from technical services where technical agreement is implemented in India. | ||
| Section 2(25A). India includes territorial waters of India, its continental shelf, air space above territorial waters and exclusive economic zone. | Oil Rig |
 |
 |
 |
 |
The document Residential Status (Section 5 to 9) | Fast Track Quick Revision Income Tax - Taxation is a part of the Taxation Course Fast Track Quick Revision Income Tax.
All you need of Taxation at this link: Taxation
|
21 videos|28 docs
|
FAQs on Residential Status (Section 5 to 9) - Fast Track Quick Revision Income Tax - Taxation
| 1. What is residential status for taxation purposes? |  |
Ans. Residential status for taxation purposes refers to the determination of an individual's tax liabilities based on their residency status in a particular country. It determines whether an individual is considered a resident or a non-resident for tax purposes and affects the extent of their tax obligations.
| 2. How is residential status determined for taxation? | |
Ans. The determination of residential status for taxation typically depends on factors such as the duration of stay in a country, the purpose of stay, and the individual's ties to the country. Each country may have its own set of rules and criteria for determining residential status, which may include factors like physical presence, employment, and family ties.
| 3. What are the tax implications for residents and non-residents? | |
Ans. Residents are generally subject to tax on their worldwide income, meaning they need to report and pay taxes on income earned both domestically and internationally. Non-residents, on the other hand, may only be taxed on income earned within the country or on specific types of income sourced from that country. The tax rates and deductions applicable to residents and non-residents may also differ.
| 4. Can an individual be a resident for tax purposes in multiple countries? | |
Ans. Yes, it is possible for an individual to be considered a resident for tax purposes in multiple countries. This can happen if the individual meets the residency criteria of more than one country based on their stay, ties, or other factors. In such cases, tax treaties between the countries may help determine the individual's tax residency and avoid double taxation.
| 5. Are there any tax benefits or exemptions available to non-residents? | |
Ans. Depending on the country's tax laws, non-residents may be eligible for certain tax benefits or exemptions. For example, they might be exempt from tax on certain types of income, have lower tax rates, or be eligible for specific deductions or credits. However, the availability and extent of these benefits vary from country to country and depend on the specific circumstances of the non-resident individual.
Related Exams
About this Document
|
4.64/5 Rating |
|
Dec 19, 2024 Last updated |
Document Description: Residential Status (Section 5 to 9) for Taxation 2024 is part of Fast Track Quick Revision Income Tax preparation.
The notes and questions for Residential Status (Section 5 to 9) have been prepared according to the Taxation exam syllabus. Information about Residential Status (Section 5 to 9) covers topics
like and Residential Status (Section 5 to 9) Example, for Taxation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Residential Status (Section 5 to 9).
Introduction of Residential Status (Section 5 to 9) in English is available as part of our Fast Track Quick Revision Income Tax
for Taxation & Residential Status (Section 5 to 9) in Hindi for Fast Track Quick Revision Income Tax course.
Download more important topics related with notes, lectures and mock test series for Taxation
Exam by signing up for free. Taxation: Residential Status (Section 5 to 9) | Fast Track Quick Revision Income Tax - Taxation
Description
Full syllabus notes, lecture & questions for Residential Status (Section 5 to 9) | Fast Track Quick Revision Income Tax - Taxation - Taxation | Plus excerises question with solution to help you revise complete syllabus for Fast Track Quick Revision Income Tax | Best notes, free PDF download
Information about Residential Status (Section 5 to 9)
In this doc you can find the meaning of Residential Status (Section 5 to 9) defined & explained in the simplest way possible. Besides explaining types of
Residential Status (Section 5 to 9) theory, EduRev gives you an ample number of questions to practice Residential Status (Section 5 to 9) tests, examples and also practice Taxation
tests
|
Explore Courses for Taxation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Semester Notes
,Viva Questions
,Sample Paper
,MCQs
,Objective type Questions
,ppt
,Extra Questions
,Residential Status (Section 5 to 9) | Fast Track Quick Revision Income Tax - Taxation
,past year papers
,mock tests for examination
,Important questions
,Residential Status (Section 5 to 9) | Fast Track Quick Revision Income Tax - Taxation
,Exam
,shortcuts and tricks
,Previous Year Questions with Solutions
,video lectures
,Residential Status (Section 5 to 9) | Fast Track Quick Revision Income Tax - Taxation
,practice quizzes
,Free
,Summary
,study material
;
Additional Information about Residential Status (Section 5 to 9) for Taxation Preparation
Residential Status (Section 5 to 9) Free PDF Download
The Residential Status (Section 5 to 9) is an invaluable resource that delves deep into the core of the Taxation exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Residential Status (Section 5 to 9) now and kickstart your journey towards success in the Taxation exam.
Importance of Residential Status (Section 5 to 9)
The importance of Residential Status (Section 5 to 9) cannot be overstated, especially for Taxation aspirants.
This document holds the key to success in the Taxation exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Residential Status (Section 5 to 9) Notes
Residential Status (Section 5 to 9) Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Residential Status (Section 5 to 9).
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Residential Status (Section 5 to 9) Notes on EduRev are your ultimate resource for success.
Residential Status (Section 5 to 9) Taxation Questions
The "Residential Status (Section 5 to 9) Taxation Questions" guide is a valuable resource for all aspiring students preparing for the
Taxation exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Residential Status (Section 5 to 9) on the App
Students of Taxation can study Residential Status (Section 5 to 9) alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Residential Status (Section 5 to 9),
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Residential Status (Section 5 to 9) is prepared as per the latest Taxation syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup