Consider the following conditions : (a) An individual is in India for a period of 182 days in the financial year in which he is getting his salary income. (b) An individual is in India for a period of 60 days or more during financial year in which he gets his salary and 365 days or more during 4 years immediately preceding to that financial year. If one of the above conditions is satisfied, as per the provisions of Income Tax Act, 1961, he is :
Ordinary resident of India
Under section 6(1) of the Income Tax Act, 1961, as it stood in 2015, an individual is resident in India in a previous year if he satisfies either basic condition: he is in India for 182 days or more in that year, or he is in India for 60 days or more in that year and 365 days or more in the four preceding years.
The two conditions given are exactly these basic conditions, so satisfying either makes the individual a resident; he cannot be a non-resident.
A resident is then ordinarily resident unless the additional tests of section 6(6) make him not ordinarily resident: being non-resident in nine of the ten preceding years, or being in India for 729 days or less in the seven preceding years. The question gives no such facts, so the accepted answer treats him as an ordinary resident.
There is no status called resident and categorised citizen; section 29 deals with how business income is computed, not with residence.
The Finance Act, 2020 later added a 120-day rule for certain Indian citizens and persons of Indian origin with high Indian income, and a deemed-resident rule under section 6(1A), treating both as not ordinarily resident; the answer reflects the law of 2015.
Hence, Ordinary resident of India.
Similar Questions
Rental income received by a foreign individual, from another foreign individual, in respect of the property situated in Delhi is taxable in the hands of :
Mr. X, a non-resident, earned ₹ 36,000 as interest on German Development Bonds. Of this, he received one-sixth in India. The amount to be included as interest for the computation of his Gross Total Income is
Important Questions from Residential Status
Residential status in Indian Income Tax Act is determined for which one of the following?
- Which of the following statements is correct?
A. If a company is an Indian company, it will automatically be considered a domestic company.
B. A foreign company means a company that is not a domestic company.
C. The residential status of an Indian company can be non-resident in India.
D. The residential status of a foreign company can never be resident in India.
E. The foreign income of a resident company in India is taxable.
Choose the correct answer from the options given below: Rental income received by a foreign individual, from another foreign individual, in respect of the property situated in Delhi is taxable in the hands of :
Mr. X, a non-resident, earned ₹ 36,000 as interest on German Development Bonds. Of this, he received one-sixth in India. The amount to be included as interest for the computation of his Gross Total Income is
