Residential Status | Basic Conditions | Income Tax | AY 2026-27 | CA Inter May, Sep 26, Jan 27 exams

Описание: Sec. 5 Scope of Total Income/Incidence of tax
According to the residential status, the assessee can either be:
(i) Resident in India; or
(ii) Non-resident in India.
However, individual and HUF cannot be simply called resident in India. If individual is a resident in India he will be either:
(a) Resident and Ordinarily resident in India; or
(b) Resident but not Ordinarily resident in India.
Other categories of persons shall either be resident in India or non-resident in India. There is no further classification into ordinarily resident or not ordinarily resident in their case.
Sec. 6 Computation of Residential Status
SECTION 6(1) : RESIDENT
Basic Conditions for Resident
(a) Assessee must be in India for the period(s) of 182 days or more during the relevant P/Y.
(AND/OR)
(b) Assessee must be in India for the period(s) of 60 days or more during the relevant Previous Year and 365 days or more during the 4 Previous Years immediately preceding the relevant Previous Year.
EXPLANATIONS TO SECTION 6(1): There are two exceptions for the condition (b) given in Section 6(1). In these two exceptional cases the second basic condition is not relevant.
1. Indian citizen leaves India for the purpose of employment outside India or Indian citizen leaves India as a member of a crew of an Indian ship
2. Indian citizen or person of Indian origin comes to India on visit.

However, such person having total income, other than the income from foreign sources [i.e., income which accrues or arises outside India (except income from a business controlled from or profession set up in India) and which is not deemed to accrue or arise in India], exceeding `15 lakhs during the previous year will be treated as resident in India if
-the period of his stay during the relevant previous year amounts to 182 days or more, or
he has been in India during the 4 years immediately preceding the previous year for a total period of 365 days or more and has been in India for at least 120 days in the previous year.

(2) Deemed resident [Section 6(1A)]– An individual, being an Indian citizen, having total income, other than the income from foreign sources [i.e., income which accrues or arises outside India (except income from a business controlled from or profession set up in India) and which is not deemed to accrue or arise in India], exceeding ` 15 lakhs during the previous year would be deemed to be resident in India in that previous year, if he is not liable to pay tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature.
However, this provision will not apply in case of an individual who is a resident of India in the previous year as per section 6(1).

SECTION 2(30) : NON-RESIDENT
If an Individual is not able to satisfy any of the above mentioned two conditions then such Individual shall be regarded as a Non-Resident of India.

SEC. 6(6)(a) RESIDENT & ORDINARILY RESIDENT OF INDIA: (ROR)
An individual being a resident is said to be ordinarily resident in India if he satisfies both of the following additional conditions:
1. He has been a resident in India for at least 2 out of 10 previous years immediately preceding to the relevant previous year;
(AND)
2. He has been in India for 730 days or more during 7 previous years immediately preceding to the relevant previous year.
If such individual is an Indian citizen who is deemed to be resident in India under section 6(1A) [It may be noted that a deemed resident will always be a resident but not ordinarily resident].

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