importance of residential status - jmpcollege.orgjmpcollege.org/downloads/basis-of-charge.pdf ·...
TRANSCRIPT
IMPORTANCE OF RESIDENTIAL STATUS
Country has right to tax ALL income of it’s Residents Person
Residents Country has right to tax ALL income which arise in his own country by Any Status of person.
Income
C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
DIFFERENT TYPE OF RESIDENTIAL STATUS
Residential Status
Resident
Resident & Ordinary Resident
Resident but Not Ordinary Resident
Non-Resident
C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
CRITERIA USED TO DETERMINE RESIDENTIAL STATUS
• Individual
• HUF
• Company
• Others
Decide type of Person
• Nos Of Days Stay in India during previous year.
• Place of Incorporation
• Place of Management
Criteria according to type of Person can be
• To be Resident but Not Ordinary Resident.-Only Individual & HUF
Once Resident Status is determine, then further
following Criteria need to satisfy
Non-Resident
Resident
C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
CRITERIA FOR INDIVIDUAL TO DECIDE RESIDENTIAL STATUS
If stay in India is less than 60 days
during previous year i.e.
Non-Resident
“B”
If it’s between 60 days and 181 days during previous year
than--- check last 4 previous years record
preceding the previous year total number of days stays,
If stay is more than or equal to 182 days
during previous year i.e. Resident
365 days
or more
In the following Situation above “B” is not applicable (i.e. can Stay in India upto 181
days and will be considered as Non-Resident:-
a) An Indian Citizen who leaves India for purpose of Employment outside India
b) An Indian Citizen or India Origin come to visit India i.e. on Holiday. C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
RESIDENTIAL STATUS CAN VARY FROM YEAR TO YEAR
1) Stay in India need not be the continuous period of stay
2) The stay in India need not be the active one i.e. it can be on holiday also
3) For purpose of counting the days both the date of arrival and departure should
be counted
4) The date of arrival and departure should be counted as per the stamping in
passport.
5) Stay include stay in territorial water i.e. 18 nautical miles from land (22Kms)
6) Stay even on ship within above will be counted
7) PIO (Person of Origin) status is examined only for those who does not hold
India passport)
C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
RULES FOR DETERMINING RESIDENT BUT NOT ORDINARY RESIDENT
RNOR is a person
who satisfy any one of
the conditions specified
(Sec 6(6))
• 1) If such individual is Non-Resident in 9 out of 10 previous year preceding the previous year.
• 2) If such individual stay in India in 7 previous year preceding the previous year is less than 730 days.
C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
ILLUSTRATIONS 1 :-
Mr. Bharat, an
Indian national,
left India for
Denmark on 1st
January 2013.
He returned to
India on 31st
May 2014. He
got as
ownership flat in
Thane.
Determine his
residential
status for the
assessment
years 2013-14
and 2014-15. C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
ILLUSTRATIONS 2 :-
Mr. Anand who
was abroad
returned to
India 25th June,
2013 and again
left India on 15th
January, 2014.
What is his
residential
status for the
Assessment
Year 2014-15
C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
ILLUSTRATIONS 3 :-
Mrs. Bharati who is
an Indian citizen
came on a visit to
India on 1st June,
2013. She left India
on 30th Nov. 2013.
Prior to 1-4-2013
she was in India for
more than 365 days
during the
preceding four
previous years:
2009-10 to 2013-13
what is her
residential status for
assessment year
2014-15?
C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
ILLUSTRATIONS 4 :-
Mr. Rajesh who is
an Indian citizen
leaves India on 27th
September 2013 for
the purposes of
employment outside
India and comes to
Indian on 1st April
2014. He was in
India for more than
365 days during the
four preceding
previous years
2009-10 to 2012-13.
What will be
residential status of
Mr. Rajesh for the
assessment year
2014-15?
C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
ILLUSTRATIONS 5 :-
Mr. James Brown of
America came in
India for the first
time on 1st April,
2012 and started
the business in
Mumbai. What is his
residential status for
the assessment
year 2014-15
C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
ILLUSTRATIONS 6 :-
Mr. Harihar from Sri
Lanka came to India
for the first time on
1st November 2012.
He was in India
upto 31st October,
2013 on Which day
he left for Japan.
During his stays at
Delhi upto 31st
March, 2013 and
thereafter remains
in Mumbai till his
departure from
India. What is his
residential status for
Assessment Year
2013-14 and 2014-
15?
C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E
ILLUSTRATIONS 7 :-
Mr. Vishal was born
in Nasik in 1980. He
went to went to New
York in 1983 and
was there till 31st
March, 2004.
Thereafter he
returned to India.
What is his
residential status for
the Assessment
Years 2013-14 and
2014-15?
C A R A J E S H D A L A L - J . M . P A T E L C O L L E G E O F
C O M M E R C E