Residential Status
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The document discusses the residential status of an assessee under the Indian Income Tax Act. It outlines the basic conditions and additional conditions to determine if an assessee is a resident, ordinarily resident, not ordinarily resident, or non-resident. The basic conditions include being in India for 182 days or more in the previous year, or being in India for at least 365 days in the 4 years preceding the previous year and 60 days in the previous year. The additional conditions require being a resident in at least 2 of the 10 years preceding the relevant year, and being in India for at least 730 days in the last 7 years.
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Residential status in Income Tax
The document discusses the different types of residential statuses under the Indian Income Tax Act which determine the scope of taxability of an individual's income. There are three residential statuses: resident, ordinary resident, and non-resident. A resident is someone who is in India for at least 182 days in the previous year or at least 60 days in the previous year and 365 days in the last 4 years. An ordinary resident meets one basic condition and both additional conditions of being in India for at least 2 of the last 10 years and at least 730 days in the last 7 years. Anyone who does not meet the criteria is a non-resident.
Chapter 2 residential status
- Residential status determines the scope of total income that is taxable in India for an individual, HUF, firm, company, or other person. It depends on the number of days spent in India and/or control and management of affairs in India during the previous year.
- For individuals, residential status can be resident, resident but not ordinarily resident (R-NOR), or non-resident. To be a resident, one must spend 182 days or more in India during the previous year or 60 days and 365 days in the last 4 years.
- For HUF, firm, company or other association, control and management of affairs must be wholly/partly situated in India to be resident.
Residential Status of an Individual in India
This document provides an overview of residential status for individuals under the Income Tax Act of 1961 in India. It notes that residential status depends on the number of days spent in India between April 1 and March 31 of the tax year. There are four categories of residential status: non-resident, resident, ordinarily resident (ROR), and not ordinarily resident (NOR). To determine status, there are two tests - Test A involves being present in India for at least 182 days or 60 days plus 365 days in the last 4 years, while Test B for ordinary residence requires being a resident in 2 of the last 10 years and being present in India for at least 730 days in the last 7 years.
Types of Assessees and Residential Status
This document summarizes key concepts related to assessees and residential status under Indian income tax law. It defines an assessee as the person who pays tax to the government and describes the different types of assessees, including ordinary, representative/deemed, and assessee in default. It also outlines the criteria for determining residential status, such as an individual being considered a resident if they are in India for at least 182 days or at least 60 days plus 365 days in the last 4 years. Finally, it provides an example problem of determining residential status for an individual who left India on October 1st and returned on March 10th of the following year.
Residential Status
1. The document discusses the rules for determining an individual's residential status for tax purposes in India.
2. It outlines the basic conditions for being considered a resident of India, including staying 182 days or more in the previous year or staying 60 days or more and 365 days in the last 4 years.
3. It then gives an example calculation of residential status for an individual named Mr. X over several previous years, determining that he qualifies as a "resident and ordinarily resident" of India based on meeting the additional conditions.
Residential status
This document discusses the determination of residential status of assessees in India for tax purposes. It defines resident and non-resident individuals and the rules used to determine their status. An individual is a resident if they were in India for 182 days or more in the previous year, or were in India for at least 365 days in the last 4 years and 60 days in the previous year. To be ordinarily resident, they must also meet additional criteria of being resident in 2 of the last 10 years and being in India for at least 730 days in the last 7 years. Anyone who does not meet the basic or additional criteria is considered a non-resident.
Residential status
The document discusses the residential status of individuals, HUFs, firms, AOPs, companies and other persons under the Income Tax Act.
It defines residents as persons satisfying the basic conditions of being in India for 182 days or more in a year or 60 days and 182 days in the last 4 years. Ordinarily residents satisfy additional conditions of being in India for 730 days in the last 7 years and in at least 2 of the last 10 years.
The residential status of HUFs, firms, AOPs and other persons depends on where the control and management of their affairs is situated. Companies are residents based on where their control and management is situated.
The incidence of tax depends
Residential status sec 6
This document outlines the residential status classifications under Section 6 of the Indian Income Tax Act of 1961. It discusses the classifications for individuals, Hindu Undivided Families, firms, companies, and other persons. Residential status is determined based on an assessee fulfilling basic conditions or additional conditions, and can be resident, resident but not ordinarily resident, or non-resident. The residential status of a company is also dependent on where its management and control is located.
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Residential status in Income Tax
The document discusses the different types of residential statuses under the Indian Income Tax Act which determine the scope of taxability of an individual's income. There are three residential statuses: resident, ordinary resident, and non-resident. A resident is someone who is in India for at least 182 days in the previous year or at least 60 days in the previous year and 365 days in the last 4 years. An ordinary resident meets one basic condition and both additional conditions of being in India for at least 2 of the last 10 years and at least 730 days in the last 7 years. Anyone who does not meet the criteria is a non-resident.
Chapter 2 residential status
- Residential status determines the scope of total income that is taxable in India for an individual, HUF, firm, company, or other person. It depends on the number of days spent in India and/or control and management of affairs in India during the previous year.
- For individuals, residential status can be resident, resident but not ordinarily resident (R-NOR), or non-resident. To be a resident, one must spend 182 days or more in India during the previous year or 60 days and 365 days in the last 4 years.
- For HUF, firm, company or other association, control and management of affairs must be wholly/partly situated in India to be resident.
Residential Status of an Individual in India
This document provides an overview of residential status for individuals under the Income Tax Act of 1961 in India. It notes that residential status depends on the number of days spent in India between April 1 and March 31 of the tax year. There are four categories of residential status: non-resident, resident, ordinarily resident (ROR), and not ordinarily resident (NOR). To determine status, there are two tests - Test A involves being present in India for at least 182 days or 60 days plus 365 days in the last 4 years, while Test B for ordinary residence requires being a resident in 2 of the last 10 years and being present in India for at least 730 days in the last 7 years.
Types of Assessees and Residential Status
This document summarizes key concepts related to assessees and residential status under Indian income tax law. It defines an assessee as the person who pays tax to the government and describes the different types of assessees, including ordinary, representative/deemed, and assessee in default. It also outlines the criteria for determining residential status, such as an individual being considered a resident if they are in India for at least 182 days or at least 60 days plus 365 days in the last 4 years. Finally, it provides an example problem of determining residential status for an individual who left India on October 1st and returned on March 10th of the following year.
Residential Status
1. The document discusses the rules for determining an individual's residential status for tax purposes in India.
2. It outlines the basic conditions for being considered a resident of India, including staying 182 days or more in the previous year or staying 60 days or more and 365 days in the last 4 years.
3. It then gives an example calculation of residential status for an individual named Mr. X over several previous years, determining that he qualifies as a "resident and ordinarily resident" of India based on meeting the additional conditions.
Residential status
This document discusses the determination of residential status of assessees in India for tax purposes. It defines resident and non-resident individuals and the rules used to determine their status. An individual is a resident if they were in India for 182 days or more in the previous year, or were in India for at least 365 days in the last 4 years and 60 days in the previous year. To be ordinarily resident, they must also meet additional criteria of being resident in 2 of the last 10 years and being in India for at least 730 days in the last 7 years. Anyone who does not meet the basic or additional criteria is considered a non-resident.
Residential status
The document discusses the residential status of individuals, HUFs, firms, AOPs, companies and other persons under the Income Tax Act.
It defines residents as persons satisfying the basic conditions of being in India for 182 days or more in a year or 60 days and 182 days in the last 4 years. Ordinarily residents satisfy additional conditions of being in India for 730 days in the last 7 years and in at least 2 of the last 10 years.
The residential status of HUFs, firms, AOPs and other persons depends on where the control and management of their affairs is situated. Companies are residents based on where their control and management is situated.
The incidence of tax depends
Residential status sec 6
This document outlines the residential status classifications under Section 6 of the Indian Income Tax Act of 1961. It discusses the classifications for individuals, Hindu Undivided Families, firms, companies, and other persons. Residential status is determined based on an assessee fulfilling basic conditions or additional conditions, and can be resident, resident but not ordinarily resident, or non-resident. The residential status of a company is also dependent on where its management and control is located.
Residential status
The document discusses the residential status and tax liability of individuals and entities in India. It defines the basic conditions to determine if a person is a resident, ordinary resident, or non-resident based on the number of days spent in India. An ordinary resident's total income and tax liability is the highest, including both Indian and foreign income. A non-resident's total income and tax liability is based only on Indian income. The residential status of entities like HUF, companies, firms, and AOP is also determined based on the control and management of their affairs being within or outside of India.
Residential status
Tax is levied on the total income of an assessee under the provisions of Income Tax Law, 1961 and the tax liability of an assessee is dependent on his/her residential status and their stay in India during the previous years. In this article / PPT we'll discuss how a person becomes the Resident / Ordinary Resident / Not Ordinary Resident / Non Resident of India under Section 6 of Income Tax Law, 1961.
Residential status
Chris Gayle comes to India for 100 days each year. To determine his residential status for AY 2013-14, his stay in the previous year 2012-13 is considered. He satisfies the second condition under section 6(1) of being in India for 60 days in the previous year and 365 days in the last 4 years, making him a resident. However, his total stay in India in the last 7 years is 700 days, which is less than the 730 days required to be considered a resident ordinarily. Therefore, his residential status is resident but not ordinarily resident.
Residential status
This document discusses residential status under Indian income tax law. It explains that an individual's tax liability depends on their residential status, which can be resident, non-resident, or ordinarily resident. It also discusses how residential status is determined for individuals, HUFs, firms, companies and other persons. Key factors include number of days present in India and control and management of affairs. The document provides examples to illustrate how residential status is assessed and its implications for taxing different types of income received in or outside of India.
Presentation on Residence and tax liability, ppt on Residence and tax liability
Presentation on Residence and tax liability, ppt on Residence and tax liability, Residence and tax liability, Different Residential status, types of Resident, Residential status: Sec. 6 (1), Basic Conditions to determine residential status, Additional conditions [Sec. 6(6)(a)] to determine residential status, Conditions to be satisfied to be a resident, Residential Status in a nutshell.
Residential status
This document provides an overview of basic income tax concepts in India. It defines key terms like assessee, previous year, assessment year, and heads of income. It explains the different types of taxes in India including direct and indirect taxes. It also outlines the criteria for determining an individual's residential status for income tax purposes as normal resident, resident but not ordinarily resident, or non-resident. Specific examples are provided to illustrate how to determine an individual's residential status based on their period of stay in India.
03 residential status 17 18 ay
- Residential status determines an individual's tax liability in India and depends on the number of days spent in India in the relevant fiscal year and previous years.
- For individuals, residential status can be ordinarily resident, not ordinarily resident, or non-resident depending on whether basic conditions regarding number of days in India are met as well as additional conditions for ordinarily resident status.
- For Hindu Undivided Families (HUFs), residential status depends on whether control and management of the HUF is wholly or partly located in India. Ordinarily resident status for HUFs also considers conditions for the karta or manager.
- Other entities like firms, companies, and other persons are considered
Residential status of an individual
Total income of an assessee cannot be computed unless the person’s residential status in India during the previous year is known.
Here you get the answer for determining the residential status of an individual
residential status and its effect on tax incidence
The document discusses the determination of residential status in India for income tax purposes. It defines the different types of residential statuses as ordinary resident, resident but not ordinarily resident, and non-resident. It outlines the basic conditions and additional conditions to determine if an individual, HUF, firm, company, etc. qualifies as a ordinary resident or resident but not ordinarily resident. The control and management of affairs is used to determine residential status for HUF, firm, association of persons, and companies. Income from different sources is taxable in India based on the residential status of the assessee.
Residential status under income tax
Why to determine Residential Status?
Categorization of Residential Status.
Rules for determining the Residential Status :
Section 6(1) - Rule for determining the Residential Status of an Individual
Section 6(2) - Rule for determining the Residential Status of an HUF, Firm, AOP, BOI
Section 6(3) - Rule for determining the Residential Status of Company
Section 6(4) - Rule for determining the Residential Status of any other person
Glance on Incidence of Tax
Residential status and Incidence of tax
This document discusses the residential status and tax incidence of individuals, HUFs, firms, and other entities in India.
It begins by explaining the basic conditions for an individual to be considered a resident or non-resident in India based on the number of days spent in India. It further classifies residents as ordinarily resident or not ordinarily resident based on additional criteria. Similar classifications and conditions are described for HUFs and other entities.
Several examples are provided to illustrate how to determine an individual's residential status for tax purposes based on their fact pattern. Key factors like citizenship, location of birth or domicile, purpose and continuity of stay are discussed.
In conclusion, the document outlines the process
RESIDENTIAL STATUS AND INCOME TAX
The document discusses the residential status of individuals, HUFs, firms, AOPs, and companies in India for income tax purposes. It defines the categories of resident and ordinarily resident, resident but not ordinarily resident, and non-resident. An individual is resident if they meet basic presence tests for days in India, and ordinarily resident if they also meet additional tests. HUFs, firms, and AOPs are resident based on control and management in India. A company is resident if incorporated in India or its PoEM is in India. Total income taxed depends on residential status and includes income received, accrued or arising in India or from an India-based business or profession.
Residential status notes
This document discusses residential status under Indian income tax law. It defines residential status and explains why it is important for determining tax liability. There are different residential statuses for individuals, HUFs, firms, companies and other persons. For individuals, residential status depends on the number of days spent in India. Ordinary residents meet additional criteria of being resident in at least two of the last ten years and being present in India for at least 730 days in the last seven years. Residential status must be determined separately for each tax year and can vary between years. Control and management determines residential status for firms, companies and other persons. The document provides examples to illustrate how residential status is assessed.
Megha Tomar
The document discusses the residential status of individuals and entities under Indian tax law. It defines ordinarily resident, not ordinarily resident, and non-resident status based on the number of days spent in India and the location of control and management. It also outlines the different types of tax liabilities that apply to income based on residential status, such as income earned and received in India, earned in India but received abroad, and earned abroad but received in India.
Residential status Tax Management
The document discusses residential status rules in India for income tax purposes. It defines an individual as a resident if they spend 182 days or more in India in a year, or 60 days in the current year if they spent 365 days in the last 4 years. However, this 60 day rule is extended to 182 days for Indian citizens who leave India for employment abroad.
The document examines two cases. In the first case, an employee deputed to the UK was found to be non-resident as they spent less than 182 days in India, even though they were not unemployed prior to leaving. In the second case, another employee deputed abroad was also found to be non-resident based on the 182 day rule for leaving India
Residential status
The document discusses residential status and tax incidence in India. It defines the different types of residential statuses - ordinary residential, non-ordinary residential, and non-residential. An individual's residential status depends on the number of days spent in India in the last year and last 4 years. A Hindu undivided family is resident if control and management is in India and non-resident if outside India. Firms and companies are resident if control and management is in India. Tax incidence depends on an entity's residential status rather than citizenship.
Income tax
The document discusses residential status and tax liability in India. It defines resident, ordinarily resident, and non-resident status and the conditions to determine each status. An individual's residential status depends on the number of days spent in India in the relevant assessment year and previous years. It must be determined separately for each assessment year as it may vary year to year.
Residential status
The document discusses the residential status rules for individuals, HUFs, firms, AOPs, and companies in India for income tax purposes. For individuals, residential status depends on the number of days spent in India in the relevant fiscal year or previous years. A HUF's residential status is based on the residential status of the Karta. For firms, AOPs, and other persons, residential status is determined by where their control and management is located. All Indian companies are considered residents, while foreign companies may be resident or non-resident depending on where their control and management is located.
Determination of tax incidence and residential status.
This document discusses the determination of residential status for Indian income tax purposes. There are three categories of residential status: resident, resident but not ordinarily resident (RNOR), and non-resident. A person is a resident if they stay in India for 182 days or more in a year or 365 days in the last 4 years and 60 days in the current year. A resident is further classified as ordinarily resident if they are resident for 9 of the last 10 years and stay in India for 730 days in the last 7 years. A person who does not meet the criteria for resident or ordinarily resident is non-resident. Residents pay tax on global income while non-residents and RNORs pay tax only on
Lesson 2 residential status
This document provides an overview of residential status and tax incidence in India. It discusses the residential status of individuals, Hindu Undivided Families, firms, associations of persons, companies, and other persons. For individuals and HUFs, it describes the categories of resident and ordinarily resident, resident but not ordinarily resident, and non-resident. It also discusses how residential status determines whether income earned in India or abroad is taxable in India. The document aims to help readers understand the concept of residential status and how it relates to the incidence of tax for different taxpayers in India.
Complete ctp unit 1
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This pdf covers all the basic concepts of Corporate Tax Planning, which is helpful to the students who are studying in M.com, MBA or any other Commerce Courses.INCOME TAX :- Residential and non residential status of an individual
The document discusses the provisions for determining residential status under the Indian Income Tax Act. An individual is deemed a resident if they stay in India for 182 days or more in a fiscal year, or 60 days or more in a fiscal year and 365 days in the four years before. For individuals, residential status can be ordinary resident or non-ordinary resident. For HUFs, firms, companies, and others, status is either resident or non-resident. Residential status affects tax liability and various deductions.
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Residential status
The document discusses the residential status and tax liability of individuals and entities in India. It defines the basic conditions to determine if a person is a resident, ordinary resident, or non-resident based on the number of days spent in India. An ordinary resident's total income and tax liability is the highest, including both Indian and foreign income. A non-resident's total income and tax liability is based only on Indian income. The residential status of entities like HUF, companies, firms, and AOP is also determined based on the control and management of their affairs being within or outside of India.
Residential status
Tax is levied on the total income of an assessee under the provisions of Income Tax Law, 1961 and the tax liability of an assessee is dependent on his/her residential status and their stay in India during the previous years. In this article / PPT we'll discuss how a person becomes the Resident / Ordinary Resident / Not Ordinary Resident / Non Resident of India under Section 6 of Income Tax Law, 1961.
Residential status
Chris Gayle comes to India for 100 days each year. To determine his residential status for AY 2013-14, his stay in the previous year 2012-13 is considered. He satisfies the second condition under section 6(1) of being in India for 60 days in the previous year and 365 days in the last 4 years, making him a resident. However, his total stay in India in the last 7 years is 700 days, which is less than the 730 days required to be considered a resident ordinarily. Therefore, his residential status is resident but not ordinarily resident.
Residential status
This document discusses residential status under Indian income tax law. It explains that an individual's tax liability depends on their residential status, which can be resident, non-resident, or ordinarily resident. It also discusses how residential status is determined for individuals, HUFs, firms, companies and other persons. Key factors include number of days present in India and control and management of affairs. The document provides examples to illustrate how residential status is assessed and its implications for taxing different types of income received in or outside of India.
Presentation on Residence and tax liability, ppt on Residence and tax liability
Presentation on Residence and tax liability, ppt on Residence and tax liability, Residence and tax liability, Different Residential status, types of Resident, Residential status: Sec. 6 (1), Basic Conditions to determine residential status, Additional conditions [Sec. 6(6)(a)] to determine residential status, Conditions to be satisfied to be a resident, Residential Status in a nutshell.
Residential status
This document provides an overview of basic income tax concepts in India. It defines key terms like assessee, previous year, assessment year, and heads of income. It explains the different types of taxes in India including direct and indirect taxes. It also outlines the criteria for determining an individual's residential status for income tax purposes as normal resident, resident but not ordinarily resident, or non-resident. Specific examples are provided to illustrate how to determine an individual's residential status based on their period of stay in India.
03 residential status 17 18 ay
- Residential status determines an individual's tax liability in India and depends on the number of days spent in India in the relevant fiscal year and previous years.
- For individuals, residential status can be ordinarily resident, not ordinarily resident, or non-resident depending on whether basic conditions regarding number of days in India are met as well as additional conditions for ordinarily resident status.
- For Hindu Undivided Families (HUFs), residential status depends on whether control and management of the HUF is wholly or partly located in India. Ordinarily resident status for HUFs also considers conditions for the karta or manager.
- Other entities like firms, companies, and other persons are considered
Residential status of an individual
Total income of an assessee cannot be computed unless the person’s residential status in India during the previous year is known.
Here you get the answer for determining the residential status of an individual
residential status and its effect on tax incidence
The document discusses the determination of residential status in India for income tax purposes. It defines the different types of residential statuses as ordinary resident, resident but not ordinarily resident, and non-resident. It outlines the basic conditions and additional conditions to determine if an individual, HUF, firm, company, etc. qualifies as a ordinary resident or resident but not ordinarily resident. The control and management of affairs is used to determine residential status for HUF, firm, association of persons, and companies. Income from different sources is taxable in India based on the residential status of the assessee.
Residential status under income tax
Why to determine Residential Status?
Categorization of Residential Status.
Rules for determining the Residential Status :
Section 6(1) - Rule for determining the Residential Status of an Individual
Section 6(2) - Rule for determining the Residential Status of an HUF, Firm, AOP, BOI
Section 6(3) - Rule for determining the Residential Status of Company
Section 6(4) - Rule for determining the Residential Status of any other person
Glance on Incidence of Tax
Residential status and Incidence of tax
This document discusses the residential status and tax incidence of individuals, HUFs, firms, and other entities in India.
It begins by explaining the basic conditions for an individual to be considered a resident or non-resident in India based on the number of days spent in India. It further classifies residents as ordinarily resident or not ordinarily resident based on additional criteria. Similar classifications and conditions are described for HUFs and other entities.
Several examples are provided to illustrate how to determine an individual's residential status for tax purposes based on their fact pattern. Key factors like citizenship, location of birth or domicile, purpose and continuity of stay are discussed.
In conclusion, the document outlines the process
RESIDENTIAL STATUS AND INCOME TAX
The document discusses the residential status of individuals, HUFs, firms, AOPs, and companies in India for income tax purposes. It defines the categories of resident and ordinarily resident, resident but not ordinarily resident, and non-resident. An individual is resident if they meet basic presence tests for days in India, and ordinarily resident if they also meet additional tests. HUFs, firms, and AOPs are resident based on control and management in India. A company is resident if incorporated in India or its PoEM is in India. Total income taxed depends on residential status and includes income received, accrued or arising in India or from an India-based business or profession.
Residential status notes
This document discusses residential status under Indian income tax law. It defines residential status and explains why it is important for determining tax liability. There are different residential statuses for individuals, HUFs, firms, companies and other persons. For individuals, residential status depends on the number of days spent in India. Ordinary residents meet additional criteria of being resident in at least two of the last ten years and being present in India for at least 730 days in the last seven years. Residential status must be determined separately for each tax year and can vary between years. Control and management determines residential status for firms, companies and other persons. The document provides examples to illustrate how residential status is assessed.
Megha Tomar
The document discusses the residential status of individuals and entities under Indian tax law. It defines ordinarily resident, not ordinarily resident, and non-resident status based on the number of days spent in India and the location of control and management. It also outlines the different types of tax liabilities that apply to income based on residential status, such as income earned and received in India, earned in India but received abroad, and earned abroad but received in India.
Residential status Tax Management
The document discusses residential status rules in India for income tax purposes. It defines an individual as a resident if they spend 182 days or more in India in a year, or 60 days in the current year if they spent 365 days in the last 4 years. However, this 60 day rule is extended to 182 days for Indian citizens who leave India for employment abroad.
The document examines two cases. In the first case, an employee deputed to the UK was found to be non-resident as they spent less than 182 days in India, even though they were not unemployed prior to leaving. In the second case, another employee deputed abroad was also found to be non-resident based on the 182 day rule for leaving India
Residential status
The document discusses residential status and tax incidence in India. It defines the different types of residential statuses - ordinary residential, non-ordinary residential, and non-residential. An individual's residential status depends on the number of days spent in India in the last year and last 4 years. A Hindu undivided family is resident if control and management is in India and non-resident if outside India. Firms and companies are resident if control and management is in India. Tax incidence depends on an entity's residential status rather than citizenship.
Income tax
The document discusses residential status and tax liability in India. It defines resident, ordinarily resident, and non-resident status and the conditions to determine each status. An individual's residential status depends on the number of days spent in India in the relevant assessment year and previous years. It must be determined separately for each assessment year as it may vary year to year.
Residential status
The document discusses the residential status rules for individuals, HUFs, firms, AOPs, and companies in India for income tax purposes. For individuals, residential status depends on the number of days spent in India in the relevant fiscal year or previous years. A HUF's residential status is based on the residential status of the Karta. For firms, AOPs, and other persons, residential status is determined by where their control and management is located. All Indian companies are considered residents, while foreign companies may be resident or non-resident depending on where their control and management is located.
Determination of tax incidence and residential status.
This document discusses the determination of residential status for Indian income tax purposes. There are three categories of residential status: resident, resident but not ordinarily resident (RNOR), and non-resident. A person is a resident if they stay in India for 182 days or more in a year or 365 days in the last 4 years and 60 days in the current year. A resident is further classified as ordinarily resident if they are resident for 9 of the last 10 years and stay in India for 730 days in the last 7 years. A person who does not meet the criteria for resident or ordinarily resident is non-resident. Residents pay tax on global income while non-residents and RNORs pay tax only on
Lesson 2 residential status
This document provides an overview of residential status and tax incidence in India. It discusses the residential status of individuals, Hindu Undivided Families, firms, associations of persons, companies, and other persons. For individuals and HUFs, it describes the categories of resident and ordinarily resident, resident but not ordinarily resident, and non-resident. It also discusses how residential status determines whether income earned in India or abroad is taxable in India. The document aims to help readers understand the concept of residential status and how it relates to the incidence of tax for different taxpayers in India.
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residential status and its effect on tax incidence
residential status and its effect on tax incidence
Determination of tax incidence and residential status.
Determination of tax incidence and residential status.
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This pdf covers all the basic concepts of Corporate Tax Planning, which is helpful to the students who are studying in M.com, MBA or any other Commerce Courses.INCOME TAX :- Residential and non residential status of an individual
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The document discusses the residential status of individuals, HUFs, firms/AOPs, companies, and other persons according to the Income Tax Act of 1961. It provides examples to illustrate how an individual's residential status is determined based on their physical presence in India over the previous year and preceding years. It also summarizes the classifications of resident, resident but not ordinarily resident, and non-resident and how these apply to individuals, HUFs, firms/AOPs, companies, and other persons according to their control and management being situated inside or outside of India.
1657970914945_1657970709182_residential status 2 (2).pptx
The document discusses the residential status of individuals, HUFs, firms/AOPs, companies, and other persons according to the Income Tax Act of 1961. It provides examples to illustrate how an individual's residential status is determined based on their physical presence in India over the previous year and preceding years. It also summarizes the classifications of resident, resident but not ordinarily resident, and non-resident and how these apply to individuals, HUFs, firms/AOPs, companies, and other persons according to their control and management being situated inside or outside of India.
1657970914945_1657970709182_residential status 2.pptx
The document discusses the residential status of individuals, HUFs, firms/AOPs, companies, and other persons according to the Income Tax Act of 1961. It provides examples to illustrate how an individual's residential status is determined based on their physical presence in India over the previous year and preceding years. It also summarizes the classifications of resident, resident but not ordinarily resident, and non-resident and how these apply to individuals, HUFs, firms/AOPs, companies, and other persons according to their control and management being situated inside or outside of India.
Residential status 6(1) in India
The document discusses residential status in India for tax purposes. There are two categories: resident and non-resident. A person is considered a resident if they stay in India for 182 days or more in a year, or 60 days in the current year and 365 days in the last 4 years. Anyone who does not meet these criteria is a non-resident. The document provides examples to illustrate how residential status is determined based on the number of days spent in India. It also discusses exceptions and additional conditions to qualify as resident and ordinarily resident.
DEFNTONS of taxation law with explanation
The document defines key terms related to residential status and taxation under the Indian Income Tax Act:
1) The previous year refers to the financial year prior to the assessment year, which is the year immediately following the previous year. The previous year may consist of 12 months or less.
2) An assessee is a person who is liable to pay tax under the Income Tax Act and includes individuals, HUFs, companies, firms, AOPs, and more.
3) Residential status depends on the number of days spent in India by an individual or where the control and management of an entity is located. Various provisions determine whether a person or entity is resident, resident but not ordinarily resident
Residential status-ppt1 (2)
This document discusses residential status and tax liability in India. It defines the different categories of residential status as resident and ordinarily resident, resident but not ordinarily resident, and non-resident. An individual's residential status depends on the number of days spent in India in the relevant tax year and previous years. Similarly, the residential status of HUFs, firms, companies and other entities depends on where control and management of their affairs takes place. Finally, it outlines the different types of income that are taxable in India for each residential status.
Residential Status and Tax liabilities -Incidence of Tax
Dear Pupil:
This presentation includes the Residential Status and Tax liabilities -Incidence of Tax.
Income tax Part I
This document provides an overview of income tax law in India. It discusses key concepts such as the history of income tax in India, heads of income (salary, house property, business, capital gains, other sources), important terms like assessee and residential status, and the incidence of tax based on residential status (resident, resident but not ordinarily resident, non-resident). The residential status of an individual depends on the number of days spent in India in the previous year or over the last few years. The incidence of tax, or who bears the tax burden, depends on the residential status of the assessee and where the income is earned and received.
Income tax
This document provides an overview of income tax in India. It discusses how income tax was first introduced in India in 1860. It then summarizes the key definitions and concepts related to income tax, including assessment year, previous year, assessee, types of income (direct vs indirect), and definitions of agricultural income and non-agricultural income from land. The document also outlines the different types of residential statuses (resident, resident but not ordinarily resident, non-resident) and how they are determined based on days spent in India. It concludes with examples to illustrate how residential status is assessed.
UNIT 3: RESIDENTIAL STATUS
This document discusses residential status for income tax purposes in India. It defines the categories of resident, resident but not ordinarily resident (RNOR), and non-resident. An individual is considered a resident if they are in India for at least 182 days in a year or at least 60 days in the year and 365 days in the last 4 years. To be considered a resident and ordinarily resident (ROR), additional criteria of being in India for at least 730 days in the last 7 years and being a resident for at least 2 of the last 10 years must be met. The document provides examples to demonstrate how to determine residential status.
Income tax-Residential status of an assessee
An individual’s taxability in India is determined by his residential status under the income tax act in India for any given fiscal year. The phrase “residential status” was coined by India’s income tax rules and should not be confused with an individual’s citizenship in India. There is more information about it in my PPT.The foreign income i.e. income accruing or arising outside India in any financial year is liable to income-tax in that year even if it is not received or brought into India.Income tax is a interesting subject that you can learn easily.Follow me for more information.
Residential status & taxation as per indian tax laws
This document discusses the provisions around determining residential status for taxation purposes under the Indian Income Tax Act of 1961. It defines what makes an individual a resident or non-resident of India based on the number of days spent in the country within a four year period. Specifically, an individual is considered a resident if they spend 182 days or more in India during the tax year, or 60 days or more if they have spent 365 days or more within the previous four years. It also discusses special provisions for Indian citizens working abroad or visiting India. The document provides a tabular presentation of the residential status rules and important points to consider when determining an individual's residential status for taxation.
Residence and scope of total income
The document discusses residential status and the scope of total income under the Indian Income Tax Act. It defines the three categories of residential status as resident but not ordinarily resident, resident and ordinarily resident, and non-resident. An individual's residential status is determined based on the number of days spent in India in the relevant financial year and previous years. If the conditions of 182 days in a year or 60 days in the current year plus 365 days in the last 4 years are met, the individual is considered a resident. Exceptions to this rule are provided for citizens working abroad or visiting India. The document further explains how to classify a resident as ordinarily resident or non-ordinarily resident and the tax treatment based on residential status.
INTRODUCTION_AND_RESIDENTIAL_STATUS_1.ppt
This document provides an overview of topics that will be covered in a tax and estate planning course taught by CA Sandeep Kapoor. The course covers 10 classes and topics include introduction to taxation concepts, residential status, income from various sources like house property, salaries, capital gains, and deductions. It also defines key tax terms like person, assessee, previous year, assessment year, and discusses determining residential status for individuals, HUFs, firms, companies and other entities. Based on residential status, the document outlines what types of income are liable to tax in India.
Income Tax A.Y. 2013-2014 _ Five Heads of Income
The document provides an overview of income tax in India. It covers key topics such as the framework and principles of income tax, different heads of income like salary, house property, business/profession, and capital gains. It also discusses concepts like person, assessee, previous year, residential status, scope of total income, income deemed to accrue or arise in India, and taxation of common types of income including salary, house property, and business income.
I N C O M E T A X L A W O F I N D I A
The document provides an overview of key concepts in India's income tax law, including definitions of tax-related terms like "person", "assessee", "income", and "residential status". It discusses the different sources of income and the tax treatment of various types of compensation, benefits, and loans provided by employers.
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INCOME TAX :- Residential and non residential status of an individual
INCOME TAX :- Residential and non residential status of an individual
1657970914945_1657970709182_residential status 2 (2).pptx
1657970914945_1657970709182_residential status 2 (2).pptx
1657970914945_1657970709182_residential status 2.pptx
1657970914945_1657970709182_residential status 2.pptx
Residential Status and Tax liabilities -Incidence of Tax
Residential Status and Tax liabilities -Incidence of Tax
Residential status & taxation as per indian tax laws
Residential status & taxation as per indian tax laws
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Cash flow analysis
This document discusses cash flow analysis and cash flow statements. It defines a cash flow statement as reporting cash inflows and outflows during a period, classified by operating, investing and financing activities. The objectives are to provide cash flow information, evaluate timing of cash flows, and classify cash flows. Advantages include assessing cash generation ability, classifying cash flows, and aiding forecasting. Limitations are that it only shows cash amounts and excludes non-cash items. The document also provides an example cash flow statement format and calculations.
Income from house property theory
The document discusses the taxation of income from house property under the Income Tax Act of 1961 in India. It covers topics such as the basis of charging income from house property, deemed ownership, exemptions, computation of annual value for let out and self-occupied properties, and deductions allowed such as municipal taxes and interest on borrowed capital. The key points are that income from house property is taxable unless used for business purposes; deemed owners include those who transfer property to their spouse or minor children; and deductions from annual value include standard deductions and interest expenses.
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The document outlines several sections of exempted capital gains in India. Section 54 allows for exemption of long term capital gains (LTCG) reinvested in a residential house. Section 54B provides exemption for LTCG when agricultural land is sold and proceeds are used to purchase new agricultural land. Section 54EC and 54EE allow exemption of up to Rs. 50 lakh when LTCG is reinvested in specified bonds or funds within 6 months of the asset sale.
Capital Gains
The document defines capital assets according to section 2(14) of the Income Tax Act as any property held by an assessee, whether connected to their business or not. It excludes items like stock-in-trade, agricultural land, certain bonds, and personal effects other than jewelry, artifacts, and art. Capital assets are classified as either short-term or long-term, with short-term being those held for 36 months or less and long-term being held longer. Certain assets like listed securities and equity funds are considered long-term if held over 12 months, while unlisted shares and land/buildings must be held over 24 months to be long-term.
Exempted Incomes
This document outlines various types of income that are exempted from taxation under Section 10 of the Indian Income Tax Act. It lists over 30 categories of income including agricultural income, income from Hindu Undivided Families, income from investments by Non-Resident Indians, allowances received by government employees, compensation received during voluntary retirement, amounts received from life insurance policies, provident funds, scholarships, and more. For each type of exempted income, it specifies the exact section, any applicable limits on the exemption amount, and whether the income is fully or partially exempted.
Scope of Total Income
The document discusses the scope of total income under the Income Tax Act for different residential statuses - resident and ordinarily resident, resident but not ordinarily resident, and non-resident. It provides examples of income that would be taxable for each status, depending on whether the income is received, accrued, or earned in India or abroad. It also contains sample problems calculating total income for individuals with various sources of income under each of the three residential statuses.
Classification of tax
The document discusses various concepts in taxation. It defines key terms like direct tax, indirect tax, assessment year, previous year, person, assessee, and income. It also outlines the classification of taxes into direct taxes and indirect taxes. Direct taxes are further classified into those levied at the central, state, and local levels. Central direct taxes include income tax, corporation tax, dividend tax, wealth tax, and gift tax. Indirect taxes include central excise duty, customs duty, and goods and services tax (GST).
An Introduction to Taxation
The document discusses taxation in India. It defines direct taxes as taxes levied directly on a person's income or wealth, such as income tax. The objectives of taxation are outlined as raising revenue for government spending, regulatory objectives like influencing consumption and production, developmental objectives like encouraging economic growth and employment, and reducing inequalities. Principles of taxation include adequacy, compatibility, convenience, efficiency, equity, neutrality, predictability, and simplicity. The document provides an introduction to direct taxation in India.
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Residential Status
- 1. DIRECT TAX UNIT – I TAXATION Mr. K. GANESHA MOORTHY, ANJA COLLEGE, SIVAKASI 1 Mr. K. GANESHA MOORTHY Assistant Professor, Department of Commerce (Corporate Secretaryship), Ayya Nadar Janaki Ammal College, Sivakasi. RESIDENTIAL STATUS
- 2. DIRECT TAX UNIT – I TAXATION Mr. K. GANESHA MOORTHY, ANJA COLLEGE, SIVAKASI 2 Residential Status of an Assessee: The scope of total income of an assesse is determined with reference to his residence in previous year. DIRECT TAX UNIT – I TAXATION Mr. K. GANESHA MOORTHY, ANJA COLLEGE, SIVAKASI 2
- 3. To decide the residence of an assesse, the act laids down some conditions. The are, 1. Basic Conditions 2. Additional Conditions Basic Conditions: a) He is in India in the previous year for a period of 182 days or more. (or) b) He has been in India for atleast 365 days during the 4 years preceding the previous year and he is in India for at least 60 days during the previous year. DIRECT TAX UNIT – I TAXATION Mr. K. GANESHA MOORTHY, ANJA COLLEGE, SIVAKASI 3
- 4. Additional Conditions: a) He is a resident at least in any 2 out of the 10 years preceding the relevant previous year. and b) He has been in India for at least 730 days in all during the 7 previous years preceding the relevant previous year. DIRECT TAX UNIT – I TAXATION Mr. K. GANESHA MOORTHY, ANJA COLLEGE, SIVAKASI 4
- 5. Resident: He fulfills any one of the basic conditions. Ordinarily Resident: He fulfills any one of the basic conditions and both additional conditions. Not Ordinarily Resident: He fulfills any one of the basic conditions only. Non-Resident: Does not fulfills any one of the basic conditions. DIRECT TAX UNIT – I TAXATION Mr. K. GANESHA MOORTHY, ANJA COLLEGE, SIVAKASI 5
- 6. Thank You DIRECT TAX UNIT – I TAXATION Mr. K. GANESHA MOORTHY, ANJA COLLEGE, SIVAKASI 6