1. The document discusses the residential status of individuals, HUFs, AOPs, and firms under the Indian Income Tax Act. It provides examples and solutions for determining residential status based on the number of days spent in India and the location from which business affairs are controlled. 2. Residential status is determined based on satisfying conditions for being a resident under section 6(1) or by being ordinarily resident as defined in section 6(6). 3. Location of control and management is the determining factor for residential status of HUFs, AOPs and firms, regardless of the residential status of members.

1. YES
NO
NO
YES
Stay in India for 182 days or
more during the PY
Residential Status of an Individual
INCOME TAX LAW AND PRACTICE
YES NO
Resident in India atleast in any 2 PYs out of 10
PYs preceding the relevant PY
(+)
Stay in India for 730 days or more during the 7
PYs preceding the relevant PY
Stay in India for 60 days or
more during the relevant PY
(+)
Stay in India for 365 days or
more during 4 PYs
immediately preceding the
relevant PY
ROR RNOR
Non
Resident
Exceptions to General Conditions:
The following categories of individuals will be treated as resident in India only if the period
of their stay during the relevant previous year amounts to 182 days or more.
1) Indian citizen, who leaves India during the relevant previous year as a member of the
crew of an Indian ship or for purposes of employment outside India
Or
2) Indian citizen or person of Indian origin* who, being outside India comes on a visit to
India during the relevant previous year

2. Residential status of an individual – Problems
1. Rickey Pointing,an Australian cricketer has been coming to
India for 100 days every year since 2006-07:
(a) Determine his residential status for the assessment year 2021-
2022.
(b) Will your answer be different if he has been coming to India
for 110 days instead of 100 days every year.
Determine the residential Status of individual
a)
Previous Year =1.4.2020 to 31.03.2021
i) u/s 6(1) (a) – 182 days or more
RPY = =1.4.2020 to 31.03.2021 = 100 days
ii) u/s 6(1) (b) – 60 days (RPY) and 365 days for 4 PY
immediately preceding the RPY = satisfied
RPY = =1.4.2020 to 31.03.2021 = 100 days
1.4.2019 -31.03.2020 = 100
1.4.2018-31.03.2019 = 100
1.4.2017-31.03.2018 = 100
1.4.2016 -31.03.2017 = 100
Total = 400 days
Ordinary Resident 6(6)
(a) resident in India for 2 years out of 10 PY
(b) stay in India for more than 730 days out of 7 PY

3. 1.4.2019 -31.03.2020 = 100
1.4.2018-31.03.2019 = 100
1.4.2017-31.03.2018 = 100
1.4.2016 -31.03.2017 = 100
1.4.2015 -31.03.2016 = 100
1.4.2014 -31.03.2015 = 100
1.4.2013 -31.03.2014 = 100
Total = 700 days
Hence he is resident u/s 6(1)(b) and he is not ordinaryresident u/s
6(6) as he was resident in India for more than 2years out of 10
previous year preceding relevant previous year and he was stay in
India for less than 730 days out of 7 previous years preceding
relevant previous year.
b)
Previous Year =1.4.2020 to 31.03.2021
iii)u/s 6(1) (a) – 182 days or more
RPY = =1.4.2020 to 31.03.2021 = 110 days
iv)u/s 6(1) (b) – 60 days (RPY) and 365 days for 4 PY
immediately preceding the RPY = satisfied
RPY = =1.4.2020 to 31.03.2021 = 110 days
1.4.2019 -31.03.2020 = 110
1.4.2018-31.03.2019 = 110
1.4.2017-31.03.2018 = 110
1.4.2016 -31.03.2017 = 110
Total = 440 days
Ordinary Resident 6(6)
(c) resident in India for 2 years out of 10 PY
(d) stay in India for more than 730 days out of 7 PY

4. 1.4.2019 -31.03.2020 = 110
1.4.2018-31.03.2019 = 110
1.4.2017-31.03.2018 = 110
1.4.2016 -31.03.2017 = 110
1.4.2015 -31.03.2016 = 110
1.4.2014 -31.03.2015 = 110
1.4.2013 -31.03.2014 = 110
Total = 770 days
Hence he is resident u/s 6(1)(b) and he is an ordinary resident u/s
6(6) as he was resident in India for more than 2years out of 10
previous year preceding relevant previous year and he was stay in
India for more than 730 days out of 7 previous years preceding
relevant previous year.
********
2. Mr. Joseph, a foreigner, came to India from Poland for the first
time on 1st
April 2014. He stayed here continuouslyfor 3 years and
went to Franceon 1st
April 2017. He, however, returned to India on
1st
July 2017 and went to Poland on 1st
December 2018. He again
came back to India on 25th
January 2021 on a service in India.
What is his residential status for the A.Y 2021-22?
Solution:
Relevant previous year : 1.4.2020 to 31.3.2021
i) u/s 6(1) (a) – 182 days or more
RPY = 1.4.2020-31.3.2021 = 7+28+31=66 days
ii) u/s 6(1) (b) – 60 days (RPY) and 365 days for 4 PY
immediately preceding the RPY = satisfied
RPY = 1.4.2020-31.3.2021 = 7+28+31=66 days

5. 1.4.2019-31.3.2020 = Nil
1.4.2018-31.3.2019 = 30+31+30+31+31+30+31+30+1=245 days
1.4.2017-31.3.2018 = 1+31+31+30+31+30+31+31+28+31
= 275 days
1.4.2016-31.3.2017 =365 days
Total = 885 days
Ordinary Resident 6(6)
(e)resident in India for 2 years out of 10 PY
(f) stay in India for more than 730 days out of 7 PY
Thus Mr. Joseph stayed in India for 66 days during relevant
previous year and also did stay in India for more than 365 days in
4 PY preceding the RPY and so he has fulfilled the second
condition of section 6(1)(b) hence he becomes resident of India for
the PY 2020-2021
And He is an Ordinary Resident of India as he was resident of
India for more than 2 years out of 10 PY preceding the RPY and
stay in India for more than 730 days out of 7 PY preceding the
RPY.
********
3. Mohan is a citizen of India. He left for Iran on 18th
April 2020
and could not return to India till the end of the financial year
2020-2021. Determine the residential status of an individual for
assessment year 2021-2022.
Solution:
Relevant previous year : 1.4.2020 to 31.3.2021
i) u/s 6(1) (a) – 182 days or more
RPY = 1.4.2020-31.3.2021
= 18 +0 +0+0+0+0+0+0+0+0+0 =18 days

6. ii) u/s 6(1) (b) – 60 days (RPY) and 365 days for 4 PY
immediately preceding the RPY = satisfied
RPY = 1.4.2020-31.3.2021
= 18 +0 +0+0+0+0+0+0+0+0+0 =18 days
Hence Mohan is a non resident u/s 2(30) as he was not satisfied
the both conditions of resident u/s 6(1).
********
4. Mr. Velan of Madurai left India on 12th
September 2020 as an
employee in Jalausha an Indian Ship and and was back in Madurai
on 20th
September 2021. Determine his residential status for the
assessment year 2021-2022.
Solution
Determination of Residential status of Mr Velan
Assessment year: 2021-2022
Previous year: 2020-2021
a) Stay in India during the previous year 2020-21
1.4.2020-12.9.2020
= 30+31+30+31+31+12=165 days
As an Indian citizen employed as member of crew of an Indian ship, Mr Velan
has to stay in India at least 182 days in the previous year to fulfill basic
conditions 1 and 2 u/s6(1) to qualify as resident. Since he stayed in India only
for 165 days in the previous year, he fails to satisfy both the basic conditions.
Therefore Mr velan is Non-resident for the assessment year 2021-2022.
Note: Additional conditions are irrelevant when a person does not satisfy the
basic conditions for being resident.
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7. Residential Status of HUF
5. Head office of XY, a Hindu undivided family, is situated in Hongkong. The family
is managed by Y who is resident in India one year out of 10 years preceding the
previous year 2020-21. Determine the residential status of the HUF for the assessment
year 2021-2022 if the affairs of the family business are a) wholly controlled from
Hongkong and b) partly controlled from India.
Solution
Determination of Residential status of HUF for the assessment year 2021-2022
AY: 2021-22 PY: 2020-21
a) If the affairs of the family business are wholly controlled from Hongkong
The residential status of the HUF is “Non-resident” for the assessment year 2021-22
as the control and management of the affairs has been wholly situated outside India.
b) If the affairs of the family business are partly controlled from India
The residential status of the HUF is “Resident but not ordinarily resident” for the
assessment year 2021-22 as the control and management of its affairs is partially
done from India and Karta is not ordinary resident because he was resident for one
out of ten years preceding the previous year.
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Residential Status of AOP
6. An AOP carries on business from Chennai. Its president the chief executive, resides
in Chennai and controls its operations. Most of its members are foreign citizens and
non-residents.
a) Determine the residential status of the AOP
b) Does it make any difference if its principal officer resides in Bangladesh and
controls its affairs?
Solution:
Determination of Residential status of AOP for the assessment year 2021-2022
a) The AOP is “Resident and ordinarily resident” because its principal officer i.e
president resides in India and controls its operations.
b) The AOP is Non Resident because its principal officer i.e president controls its
operations from outside India i.e Bangladesh.
******

8. Residential Status of a Firm
7. K.M.K & Co is a partnership firm registered in India and controlled from India.
Out of the 4 partners 3 were in Germany for more than 200 days during the previous
year 2020-2021. Determine the residential status of the firm for the previous year
2020-21 and also discuss the residential status of the firm if:
i) All the 4 partners are non-resident during 2020-21
ii) All the 4 partners are resident during 2020-21 and firm is controlled from outside
India
iii) All the 4 partners are resident but not ordinarily resident during 2020-21
Solution
Determination of Residential status of KMK & Co for the assessment year 2021-2022
Previous Year =1.4.2020 to 31.03.2021
Assessment Year =1.4.2021 to 31.03.2022
Residential status of the firm is Resident for the previous year 2020-21 as the firm is
controlled from India.
i) Even if all the partners are non-resident the residential status of the firm still will be
Resident as the firm is controlled from India. Residential status of individual
partners will be irrelevant in the case of a firm.
ii) Residential status of firm will be non-resident as the firm is controlled from outside
India.
iii) The firm will be resident during 2020-2021, as the business is controlled from
India.
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