NOTE- 13, RESIDENTIAL STATUS

Individual, Ordinary resident Not ordinary resident Non- resident INDIVIDUAL Ordinary resident Not ordinary resident Satisfies at least one basic condition AND both additional condition Satisfies at least one basic condition BUT does not satisfy both additional condition (satisfying one additional condition has no relevance and will be assumed as if did not satisfy additional condition Does not satisfy any one basic condition HUF Ordinary resident Not ordinary resident Non- resident Firm/AOP Resident Non- Resident Company Resident Non- Resident

Non resident

Basic Condition [section 6(1)] 1. stay in India in relevant previous year is at least 182 days 2. stay in India in relevant previous year is at least 60 days and in 4 preceding previous years is at least 365 days EXCEPTIONS a) In case of individual leaving India who is Indian citizen for employment out side India or a member of crew of Indian ship, who is Indian citizen leaves India then for relevant previous year in which he leaves India, 60 days in clause (2) shall be substituted for 182 days. b) In case of an individual who is a citizen of India or a person of Indian origin who comes on a visit to India, 60 days in clause (2) shall be substituted for 182 days.

Additional conditions [section 6(6)] 1. Has been resident in India for at least 2 previous years out of 10 previous years immediately preceding the relevant previous year 2. his stay in India has been at least 730 days during 7 preceding previous years immediately preceding the relevant previous year

HINDU UNDIVIDED FAMILY Ordinary resident Not ordinary resident Satisfies one basic condition AND both additional condition Satisfies one basic condition BUT does not satisfy both additional condition (satisfying one additional condition has no relevance and will be assumed as if did not satisfy additional condition Does not satisfy the basic condition

Non resident

Basic Condition : Management and control is fully or partly situated in India Additional condition: 1) Karta has been resident in India for at least 2 previous years out of 10 previous years immediately preceding the relevant previous year 2) Stay of Karta in India has been at least 730 days during 7 preceding previous years immediately preceding the relevant previous year FIRM, AOP or BOI Resident Non resident Management and control is fully or partly situated in India Management and control is situated fully outside India

COMPANY Resident Non resident If it is an Indian company or Management and control is fully situated in India Not an Indian and Management and control is situated fully outside India

INCIDENCE OF TAX

Particulars of income Income received or deemed to be received in India in previous year Income which accrue or arise in India or deemed to accrue or arise in India Income which accrue or arise out side India and received out side India from a business controlled from India Income which accrue or arise out side India and received out side India from any other source Past untaxed income remitted to india

Ordinary resident Yes

Not ordinary resident Yes

Non resident Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

No

No

No

No

No

PROBLEMS

1. A citizen of USA has been staying in India since 1987. He leaves India on 16-72009 on a visit to USA and returns on 4-1-2010. Determine his residential status for the previous year 2009-10. 2. Indian citizen and businessman, Sree Raj Gopal, who resides in Jaipur, went to Germany for employment purposes on 15-8-2009 and came back to India on 10-11-2010. He has never been out of India in the past a) Determine the residential status of Raj Gopal for assessment year 201011 b) will your answer be different if he had gone on a leisure trip 3. Rikkey ponting, an Australlian cricketer has been coming to India for 100 days every year since 1997-98 a) Determine the residential status of Rikkey ponting for assessment year 2010-11 b) Will your answer be different if he has been coming to India for 110 days instead of 100 days every year. 4. G was born in England in 1966. his father was born in America in 1936. G,s grand father was born in Lahore in 1916. will G be a resident in India if he visits India for 180 days during the previous year 2009-10. 5. following is the income of Sudhir Kumar for the previous year 2009-10 i) ii) iii) iv) v) vi) vii) viii) Profit from business in Iran received in India Rs. 5,000 Income from house property in Iran received in India Rs. 500 Income from house property in Pakistan deposited there in Bank Rs 1000 Profit of business from Pakistan, deposited in Bank there. This business is controlled from India Rs 20,000 Out of above 20,000 remitted to India Rs 10,000 Income from profession in India but received in England Rs 2,000 Profits earned from business in Kanpur Rs 6,000 Income from agriculture in England, all spent on education of children in England Rs 5,000

From above particulars, ascertain the taxable income of Sudhir for the previous year 2009-10. if Sudhir kumar is a) Resident and ordinary resident b) Not ordinary resident c) a Non- resident