Question

24. Mr Manmohan Sharma' goes out
of India every year for 274 days. For
the assessment year 2020-21 he is
Resident and Ordinarily Resident
Resident but Not Ordinarily Resident
a Non Resident
none of the above​

Answer 1

Answer:

It is easy to classify persons of Indian origin. Anyone whose parents or grandparents (maternal or paternal) were born in undivided India, is a person of Indian origin.

But matters get complicated when we look at who falls in the ambit of Indian tax authorities, and who does not. The tax implications depend on the residential status of the individual tax assessee.

Answer 2

Answer:

Resident but Not Ordinarily Resident

Explanation:

Mr Manmohan Sharma is Resident but Not Ordinarily Resident because he is fulfilling the basic conditions of becoming the resident but unable to fulfill the additional conditions.

Basic conditions of becoming a Resident. :

1. He must have stayed in India 182 days or more during relevant previous year.
2. he must have stayed in India at least 60 days during the relevant previous year and 365 days during the preceding four years of relevant previous year.

Once, an individual is determined as resident, by fulling both the basic conditions.

Now additional conditions shall have to be checked whether he is ordinarily resident or not.

Additional conditions:

1. He must have stayed in India at least 2 years during the proceeding 10 years of relevant previous year.
2. he has been in India for 730 days during the proceeding 7 years of relevant previous year.

Now,  Mr Manmohan Sharma ( we will take him as resident because no further information is given in the question )  is out for 274 days which means 365 days -274 days = 91 days.

He is not fulfilling any additional conditions so he is a Resident but Not Ordinarily Resident.

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