Mr. B, a married citizen of India left for Germany for the first time on 15-
09-20010 on a business trip. He returned to India on 5-6-2011. During his absence
from India he maintained a dwelling house for himself in Calcutta. What will be
his residential status for the assessment year 2012-2013.
Answers
Answer:
residential status or ordinary status
Mr. B's Residential status is resident and ordinarily resident
He left for Germany for the first time on 15-09-2010,
No. of days he stayed in India in financial year 2010-11 =
(from 15/09/2010 to 31/03/2011 ) = 168 days
No. of days he stayed in India in financial year 2011-12 =
(from 05/06/2011 to 31/03/2012 ) = 299 days
Determining whether resident or non-resident:
An individual will be treated as a resident in India for a year if he satisfies any of the following criteria:
- He is in India for a period of 182 days or more in that year; or
- He is in India for a period of 60 days or more in the year and for a period of 365days or more in immediately preceding 4 years.
In the year 2011-12, he stayed for 299 days which is more than 182 days.
So Mr. B is a resident in india.
Determining whether resident and ordinarily resident or resident but not ordinarily resident
A resident individual will be treated as a resident and ordinarily resident in India during the year if he satisfies the following conditions:
- He is resident in India for at least 2 years out of 10 years immediately preceding the relevant year; or
- His stay in India is for 730 days or more during 7 years immediately preceding the relevant year.
as he was in India for more than 2 years, he qualifies criteria 1, so he is a resident and ordinarily resident.
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