Residential status and income status Rules.pptx

Direct Tax

1. Residential Status Dr G Kavitha Assistant Professor & Head Department of BCom CMA Sri Ramakrishna College of Arts & Science

2. Residential status Residential status of an assessee is important in determining the scope of income on which income tax has to be paid in India.There are three different types of Residential Status such as:- Resident and ordinarily resident (ROR). Resident but not ordinarily resident (RNOR) Non Resident (NR)

3. Resident and Ordinarily Resident (ROR) An individual or HUF (Hindu Undivided Family) assessee is classified as ROR if they satisfy one basic condition and two additional conditions: Basic Condition: The individual is in India for at least 182 days during the relevant previous year. The individual is in India for at least 60 days during the relevant previous year and has been in India for at least 365 days during the four years preceding the relevant previous year. Additional Conditions: The individual has been a resident in India for at least 2 out of the 10 years preceding the relevant previous year. The individual has been in India for at least 730 days in total during the 7 years preceding the relevant previous year.

4. Resident but Not Ordinarily Resident (RNOR) An individual or HUF assessee is classified as RNOR if they satisfy one basic condition but only one or none of the additional conditions: Basic Condition: The individual is in India for at least 182 days during the relevant previous year. The individual is in India for at least 60 days during the relevant previous year and has been in India for at least 365 days during the four years preceding the relevant previous year. Additional Conditions: He has been resident in India in at least 9 out of 10 years preceding the relevant previous year. He has been India for less than 730 days in all during the 7 preceding the previous year.

5. Non-Resident (NR) An individual or HUF assessee who does not meet any of the above conditions is classified as a Non-Resident (NR).

6. SCOPE OF TOTAL INCOME Particulars ROR RNOR NR Income received in India Yes Yes Yes Income deemed to be received in India Yes Yes Yes Income accruing or arising in India Yes Yes Yes Income deemed to accrue or arise in India Yes Yes Yes Income received/accrued outside India from a business controlled in India Yes Yes No Income received/accrued outside India from a business controlled outside India Yes No No