Explain about Residential status of an individual, male, female and their determination, incidence of tax and scope of total income,types of incomes?
Answers
Residential Status of an Individual (Sec 6(1) -An individual is resident in India if he satisfies any one of the following two conditions: i. He is in India for 182 days or more in the relevant previous year or ii. He is in India for 60 days or more during the relevant previous year and for 365 days or more during 4 years immediately preceding the previous year.
Answer:An individual is resident in India if he satisfies any one of the following two conditions:
i. He is in India for 182 days or more in the relevant previous year or
ii. He is in India for 60 days or more during the relevant previous year and for 365 days or more during 4 years immediately preceding the previous year.
If he does not satisfy any one of the conditions above, he shall be non-resident.
Condition (ii) above is not applicable in following cases (means in following cases a person shall be resident of India only when he is in India for 182 days or more in the previous year):
a. If Indian Citizen leaves India during the previous year for employment outside India or as a member of crew of an Indian Ship
b. If Indian citizen or person of Indian origin visits India during previous year.
Other points:
Residential status is determined for every year separately
India includes territorial waters of India.
Employment includes self-employment
In computing the period of 182 days, the day of entry into India and the day of exit from India shall be included.
Person of Indian origin is a person who himself or any of his parents or any of his grandparents was born in undivided India before 15th August 1947.
After determining the residential status of individual/HUF, these persons are further checked whether they are ordinarily resident or not ordinarily resident.
An individual who is resident in India shall be resident and ordinarily resident (ROR) in India if he satisfies both the following conditions:
i. He has been resident in India for at least 2 out of 10 previous years immediately preceding the relevant previous year