Taxation Exam > Taxation Notes > Income Tax for assessment (Inter Level) > Residential Status - Taxation
Residential Status - Taxation | Income Tax for assessment (Inter Level) PDF Download
INTRODUCTION
- The residential status of an assessee determines the extent of his global income taxable in India. Suppose Mr. X earns an income of ? 6 Lakhs from a business in India (IY) and ? 15 Lakhs from a business in USA (FY). ? 6 Lakhs, being an Indian Income, is taxable in India whether residential status is resident or non resident. What about income earned from USA? This ? 15 Lakhs shall be taxable in India or not, shall depend upon the residential status of an assessee.
- As per section 6, on the basis of residence, assessees areclassified into following categories:
1.
Resident in India
a.
Resident & ordinarily resident in India. [R-OR]
b.
Resident & not ordinarily resident in India. [R-NOR]
2.
Non Resident in India (NR)
-
R-OR and R-NOR status is applicable only to Individual and HUF. Other persons are either Resident or Non-resident.
SECTION 6(1), 6(6). HOW TO DETERMINE RESIDENTIAL STATUS OF AN INDIVIDUAL
Section 6(1). Basic Condition
An Individual is in India for
- period or periods of atleast 182 days during the relevant previous year; or
- atleast 60 days during the relevant previous year and atleast 365 days during the 4 years immediately preceding the relevant previous year.
There are two basic conditions, (a) or (b) : Any one of the basic condition is satisfied then residential status is Resident in India. If none of the basic conditions then residential status is non resident in India.
Note 1: Relevant previous year is that previous year in which income is earned. The residential status of a person is determined for every previous year since income is computed for each previous year.
Note 2: A person may be resident for one previous year and Non-resident in the next year. Like a person may be resident for the previous year 2016-17 and may be Non-resident in the previous year 2017-18.
Note 3: An assessee may be resident of more than one country in the same previous year.
Note 4: Period or periods: It is not essential that stay should be continuous or at same place.
Note 5: 182 days or 60 days & 365 days (4 years)
P1 : Mr. Pierce Brosnan, an Irish citizen comes on a visit to India and travels to Mumbai, Tata & Bokaro Steel
City. Determine his Residential Status for the AY 2017-18.
|
PY |
Case 1 |
Case 2 |
Case 3 |
Case 4 |
Case 5 |
Case 6 |
Case 7 |
Case 8 |
Case 9 |
Case 10 |
|
2016-17 |
182 |
57 |
67 |
88 |
192 |
180 |
59 |
182 |
120 |
140 |
|
2015-16 |
- |
300 |
100 |
100 |
- |
360 |
190 |
- |
20 |
100 |
|
2014-15 |
182 |
- |
100 |
100 |
- |
360 |
185 |
- |
120 |
100 |
|
2013-14 |
- |
189 |
100 |
100 |
20 |
5 |
182 |
- |
130 |
100 |
|
2012-13 |
- |
- |
100 |
- |
345 |
5 |
170 |
- |
40 |
70 |
|
2011-12 |
- |
- |
- |
100 |
100 |
- |
200 |
- |
140 |
170 |
|
RS |
|
|
|
|
|
|
|
|
|
|
Ans: (1) R (2) NR (3) R (4) NR (5) Resident in India (6) Resident in India (7) Non-Resident in India; (8) Resident in India; (9) Non-Resident in India; (10) Resident in India.
Other points
Note 1: As per S 2(25A) India means territory of India, its territorial waters (12 nm), seabed and subsoil underlying such waters, continental shelf, Exclusive Economic Zone (upto 200 nm) and airspace above its territory and territorial waters.
Note 1: As per S 2(25A) India means territory of India, its territorial waters (12 nm), seabed and subsoil underlying such waters, continental shelf, Exclusive Economic Zone (upto 200 nm) and airspace above its territory and territorial waters.
Note 2: The residential status of an individual do not depend upon the citizenship but is determined solely on the basis of physical presence of the assessee in India i.e. for the number of days he is present in India.
Note 3: Purpose of stay is immaterial in determining the residential status.
Note 4: Where the exact arrival and departure time is not available then the day he comes to India and the day
he leaves India is counted as stay in India.
he leaves India is counted as stay in India.
P2 : In following cases compute the period of stay in India for the different previous years.
a. Compute number of days from April to September.
b. Compute number of days from October to March. (Non leap year)
c. Compute number of days from October to March. (Leap year)
d. Mr. X comes to India on 13-7-2016 and leaves India on 23-11-2016.
e. Mr. X comes to India on 6-6-2016 and leaves India on 7-9-2016.
a. Compute number of days from April to September.
b. Compute number of days from October to March. (Non leap year)
c. Compute number of days from October to March. (Leap year)
d. Mr. X comes to India on 13-7-2016 and leaves India on 23-11-2016.
e. Mr. X comes to India on 6-6-2016 and leaves India on 7-9-2016.
Ans: (a) 183 days. (b) 182 days. (c) 183 days. (d) 134 days. (e) 94 days.
P3 : In following cases find residential status.
a. Mr. X comes to India for the first time on 4-10-2016 for 200 days.
b. Mr. X comes to India for the first time on 1-3-2016 for 131 days. Earlier in PY 2014-15 he was in India for
340 days.
c. Mr. X leaves India for the first time on 28-9-2016.
d. Mr. X comes to India on 6-10-2016 and leaves India on 6-4-2017.
a. Mr. X comes to India for the first time on 4-10-2016 for 200 days.
b. Mr. X comes to India for the first time on 1-3-2016 for 131 days. Earlier in PY 2014-15 he was in India for
340 days.
c. Mr. X leaves India for the first time on 28-9-2016.
d. Mr. X comes to India on 6-10-2016 and leaves India on 6-4-2017.
Ans: (a) Non Resident (b) Resident (c) Resident (d) Non Resident.
The document Residential Status - Taxation | Income Tax for assessment (Inter Level) is a part of the Taxation Course Income Tax for assessment (Inter Level).
All you need of Taxation at this link: Taxation
|
405 videos|72 docs
|
FAQs on Residential Status - Taxation - Income Tax for assessment (Inter Level)
| 1. What is residential status for taxation purposes? |  |
Ans. Residential status for taxation purposes refers to the determination of an individual's tax liability based on their residential status in a particular country. It determines whether an individual is considered a resident or non-resident for tax purposes and influences the taxation rules and rates that apply to them.
| 2. How is residential status determined for taxation purposes? | |
Ans. Residential status for taxation purposes is determined by various factors such as the duration of stay in a country, the purpose of stay, and the individual's ties to that country. Each country has its own set of criteria to determine residential status, which may include factors like the number of days spent in the country, permanent home location, employment status, and family ties.
| 3. What are the tax implications for residents and non-residents? | |
Ans. The tax implications for residents and non-residents differ based on their residential status. Residents are generally subject to taxation on their worldwide income, which means they need to report and pay taxes on income earned both domestically and internationally. Non-residents, on the other hand, are usually taxed on income earned within the country's jurisdiction or only on specific types of income, such as income derived from local sources.
| 4. Can a person have different residential statuses for different countries? | |
Ans. Yes, it is possible for an individual to have different residential statuses for different countries. Each country has its own criteria to determine residential status, and an individual may be considered a resident in one country while being a non-resident in another. This can lead to complex tax implications, as the individual may be subject to different tax rules and rates in each country.
| 5. Are there any tax benefits or exemptions for non-residents? | |
Ans. Some countries provide tax benefits or exemptions for non-residents. These may include lower tax rates, specific deductions or exemptions for certain types of income, and tax treaties between countries to avoid double taxation. However, the availability of tax benefits or exemptions for non-residents varies between countries and is subject to specific tax laws and regulations.
Related Exams
About this Document
|
4.85/5 Rating |
|
Nov 16, 2024 Last updated |
Document Description: Residential Status - Taxation for Taxation 2024 is part of Income Tax for assessment (Inter Level) preparation.
The notes and questions for Residential Status - Taxation have been prepared according to the Taxation exam syllabus. Information about Residential Status - Taxation covers topics
like and Residential Status - Taxation Example, for Taxation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Residential Status - Taxation.
Introduction of Residential Status - Taxation in English is available as part of our Income Tax for assessment (Inter Level)
for Taxation & Residential Status - Taxation in Hindi for Income Tax for assessment (Inter Level) course.
Download more important topics related with notes, lectures and mock test series for Taxation
Exam by signing up for free. Taxation: Residential Status - Taxation | Income Tax for assessment (Inter Level)
Description
Full syllabus notes, lecture & questions for Residential Status - Taxation | Income Tax for assessment (Inter Level) - Taxation | Plus excerises question with solution to help you revise complete syllabus for Income Tax for assessment (Inter Level) | Best notes, free PDF download
Information about Residential Status - Taxation
In this doc you can find the meaning of Residential Status - Taxation defined & explained in the simplest way possible. Besides explaining types of
Residential Status - Taxation theory, EduRev gives you an ample number of questions to practice Residential Status - Taxation 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
Residential Status - Taxation | Income Tax for assessment (Inter Level)
,Important questions
,Residential Status - Taxation | Income Tax for assessment (Inter Level)
,Summary
,Free
,Viva Questions
,Semester Notes
,video lectures
,MCQs
,study material
,Exam
,shortcuts and tricks
,Residential Status - Taxation | Income Tax for assessment (Inter Level)
,Objective type Questions
,Sample Paper
,Extra Questions
,Previous Year Questions with Solutions
,mock tests for examination
,ppt
,past year papers
,practice quizzes
;
Additional Information about Residential Status - Taxation for Taxation Preparation
Residential Status - Taxation Free PDF Download
The Residential Status - Taxation 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 - Taxation now and kickstart your journey towards success in the Taxation exam.
Importance of Residential Status - Taxation
The importance of Residential Status - Taxation 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 - Taxation Notes
Residential Status - Taxation 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 - Taxation.
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 - Taxation Notes on EduRev are your ultimate resource for success.
Residential Status - Taxation Taxation Questions
The "Residential Status - Taxation 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 - Taxation on the App
Students of Taxation can study Residential Status - Taxation alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Residential Status - Taxation,
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 - Taxation 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