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
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
- An individual's residential status in India for tax purposes depends on how many days they spent in India during the year, not their citizenship.
- Individuals are classified as resident, resident but not ordinarily resident (RNOR), or non-resident based on the number of days spent in India.
- To be a resident, an individual must spend 182 days or more in India during the year or 60 days and at least 365 days in the last 4 years.
- Exceptions apply for Indian citizens working abroad or visiting India temporarily.
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.
This document discusses tax planning strategies for salaried individuals, dividing them into salary restructuring and investing in tax-saving devices. For salary restructuring, it recommends structuring salary to include tax-exempt allowances like housing, uniforms, education, etc. It also discusses commuting pension and transferring provident funds. For tax-saving investments, it lists options under sections 80C, 80D, 80E, 80G, etc and explains how to claim deductions and maximize tax savings within the specified limits.
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.
This document provides an overview of a workshop on the Foreign Exchange Management Act (FEMA) regulations and the foreign direct investment policy of India. It discusses the evolution of FEMA from the stringent Foreign Exchange Regulation Act of 1973 to the more liberal FEMA of 2000. It also outlines India's foreign investment policy framework, including the sectors that are restricted, permitted or prohibited for foreign investment. Additionally, it covers key aspects of FEMA such as the regulatory setup, definitions, transactions covered, and penalties for non-compliance.
Lecture notes on scope of total income and residental status under income ta...Dr. Sanjay Sawant Dessai
Lecture notes prepared for the students of Income tax , based on Income tax Act of India 1961. topic covered are Residential status and scope of total income of assessee.
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
- An individual's residential status in India for tax purposes depends on how many days they spent in India during the year, not their citizenship.
- Individuals are classified as resident, resident but not ordinarily resident (RNOR), or non-resident based on the number of days spent in India.
- To be a resident, an individual must spend 182 days or more in India during the year or 60 days and at least 365 days in the last 4 years.
- Exceptions apply for Indian citizens working abroad or visiting India temporarily.
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.
This document discusses tax planning strategies for salaried individuals, dividing them into salary restructuring and investing in tax-saving devices. For salary restructuring, it recommends structuring salary to include tax-exempt allowances like housing, uniforms, education, etc. It also discusses commuting pension and transferring provident funds. For tax-saving investments, it lists options under sections 80C, 80D, 80E, 80G, etc and explains how to claim deductions and maximize tax savings within the specified limits.
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.
This document provides an overview of a workshop on the Foreign Exchange Management Act (FEMA) regulations and the foreign direct investment policy of India. It discusses the evolution of FEMA from the stringent Foreign Exchange Regulation Act of 1973 to the more liberal FEMA of 2000. It also outlines India's foreign investment policy framework, including the sectors that are restricted, permitted or prohibited for foreign investment. Additionally, it covers key aspects of FEMA such as the regulatory setup, definitions, transactions covered, and penalties for non-compliance.
Lecture notes on scope of total income and residental status under income ta...Dr. Sanjay Sawant Dessai
Lecture notes prepared for the students of Income tax , based on Income tax Act of India 1961. topic covered are Residential status and scope of total income of assessee.
Computation of total income & tax liability individual, Partnership Firm,...CA Abhishek Bansal
Computation of total income & tax liability individual. Rebate U/s 87A, Surcharge, Tax On Partnership Firm, Individual, Companies, Society & Trust, Health & Education Cess, Foreign Company
residential status and its effect on tax incidencefaizchhipa
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.
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
The document provides an overview of the Income Tax Act of 1961 in India. It discusses key concepts such as the definition of an assessee, types of income, taxable income, residential status, exempted incomes, heads of income including salary, house property, capital gains, and other sources. It also summarizes provisions related to computation of profits from business or profession, capital gains, deductions allowed, and scope of total income under the act.
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.
The document provides an overview of the Reserve Bank of India (RBI) and its role in the Indian banking sector. As India's central bank, the RBI regulates banks, manages currency and monetary policy, acts as both the government and banks' banker, oversees foreign exchange, and works to maintain financial stability. The RBI was established in 1935 and is headquartered in Mumbai. It aims to ensure adequate credit flow, price stability, and public confidence in India's banking system.
From the current financial year 2020-21, Individuals & HUFs are having an option to select between old tax system & New Tax system to discharge their tax obligations. CBDT has recently issued a circular clarifying that employees need to intimate their respective employers regarding their choice and accordingly employer shall compute TDS. However in the absence of intimation, employer shall proceed according to existing tax system. Our tax team has explained the nuances of old and new tax system alongwith detailed comparison making the selection easy.
This document outlines the provisions of the Central Goods and Services Tax Act (CGST Act), 2017 in India. It provides an overview of key aspects of the Act including levy and collection of tax, input tax credit, registration requirements, tax invoices and credit/debit notes. Specifically, it notes that the CGST Act provides for the levy and collection of tax on intra-state supply of goods or services. It also summarizes some of the major chapters and provisions related to administration, determination of tax liability, registration, returns and payments.
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.
The document provides a historical background of the Goods and Services Tax (GST) in India. It details how GST was proposed in 2000 with a committee headed by Asim Dasgupta tasked to design a model for India. The government began implementing Value Added Tax (VAT) in the 2000s and the Kelkar task force in 2003 recommended a comprehensive GST based on VAT. After several discussions and drafts of the constitutional amendment bill, the bill was finally passed by the Rajya Sabha in August 2016 and ratified by the required number of states within 23 days, leading to the President signing it into law on September 8, 2016.
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.
This document discusses the residential status of Hindu Undivided Families (HUFs) under Indian tax law. It defines the three possible residential statuses of an HUF as:
1) Ordinary resident: Control and management of HUF affairs situated wholly or partially in India, and karta fulfills the additional conditions of residence in India.
2) Not ordinarily resident: Control and management situated wholly or partially in India, but karta does not fulfill the additional residence conditions.
3) Non-resident: Control and management of HUF affairs situated wholly outside of India. The residential status of the karta and co-parceners is not considered - only the location of control and management determines
Objectives & Agenda :
One of the heads of income under the Income Tax Act is Income from House Property. Under this head, incomes earned from house properties are chargeable to tax. The webinar covers the aspects of basis of charging income to tax under this head, nature of house properties taxed under the Act, manner of computing income chargeable to tax under this head, deductions available under this head and eventually judicial precedents pertaining to this head of income.
The document discusses various types of perquisites that are taxable in the hands of an employee. It defines perquisites as casual emoluments or benefits provided to an employee in addition to their salary. Some key points include:
- Rent-free accommodation provided by the employer is taxable as a perquisite. The taxable amount depends on factors like location and whether the property is owned or rented by the employer.
- Other common taxable perquisites include utilities like gas, electricity and water paid by the employer, as well as facilities like transport and education for employees' families.
- There are certain exemptions, like a fixed allowance of up to Rs. 100 per child for education or Rs. 300
The document discusses the five heads of income under the Indian Income Tax Act of 1961: (1) income from salary, (2) income from house property, (3) income from business and profession, (4) income from capital gains, and (5) income from other sources. It provides details on what types of income fall under each head and the basic rules for taxing each type of income.
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.
1. The document discusses the residential status of different types of assessees under the Income Tax Act of India. It defines criteria for an individual or HUF to be considered a resident of India, resident but not ordinarily resident, or non-resident.
2. Key factors in determining residential status include the number of days spent in India in the relevant year and previous years, as well as the location of control and management of the assessee.
3. Residential status impacts the global income of an assessee that is taxable in India, with non-residents generally only being taxed on India-source income.
Income_Tax- Basic Definition_ B.Com students docxanbazhagij
This document defines key terms related to the assessment of income tax in India. It explains that an assessment is the procedure by which an assessee's income is determined by the Assessing Officer. An assessee refers to any person whose income or loss is assessed. A deemed assessee is one who is considered an assessee for another person, while an assessee in default fails to fulfill their duties under tax law. The document also defines person, assessment year, previous year, and outlines the various categories of residential status and their implications for tax incidence: resident and ordinarily resident, resident but not ordinarily resident, and non-resident.
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.
Computation of total income & tax liability individual, Partnership Firm,...CA Abhishek Bansal
Computation of total income & tax liability individual. Rebate U/s 87A, Surcharge, Tax On Partnership Firm, Individual, Companies, Society & Trust, Health & Education Cess, Foreign Company
residential status and its effect on tax incidencefaizchhipa
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.
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
The document provides an overview of the Income Tax Act of 1961 in India. It discusses key concepts such as the definition of an assessee, types of income, taxable income, residential status, exempted incomes, heads of income including salary, house property, capital gains, and other sources. It also summarizes provisions related to computation of profits from business or profession, capital gains, deductions allowed, and scope of total income under the act.
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.
The document provides an overview of the Reserve Bank of India (RBI) and its role in the Indian banking sector. As India's central bank, the RBI regulates banks, manages currency and monetary policy, acts as both the government and banks' banker, oversees foreign exchange, and works to maintain financial stability. The RBI was established in 1935 and is headquartered in Mumbai. It aims to ensure adequate credit flow, price stability, and public confidence in India's banking system.
From the current financial year 2020-21, Individuals & HUFs are having an option to select between old tax system & New Tax system to discharge their tax obligations. CBDT has recently issued a circular clarifying that employees need to intimate their respective employers regarding their choice and accordingly employer shall compute TDS. However in the absence of intimation, employer shall proceed according to existing tax system. Our tax team has explained the nuances of old and new tax system alongwith detailed comparison making the selection easy.
This document outlines the provisions of the Central Goods and Services Tax Act (CGST Act), 2017 in India. It provides an overview of key aspects of the Act including levy and collection of tax, input tax credit, registration requirements, tax invoices and credit/debit notes. Specifically, it notes that the CGST Act provides for the levy and collection of tax on intra-state supply of goods or services. It also summarizes some of the major chapters and provisions related to administration, determination of tax liability, registration, returns and payments.
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.
The document provides a historical background of the Goods and Services Tax (GST) in India. It details how GST was proposed in 2000 with a committee headed by Asim Dasgupta tasked to design a model for India. The government began implementing Value Added Tax (VAT) in the 2000s and the Kelkar task force in 2003 recommended a comprehensive GST based on VAT. After several discussions and drafts of the constitutional amendment bill, the bill was finally passed by the Rajya Sabha in August 2016 and ratified by the required number of states within 23 days, leading to the President signing it into law on September 8, 2016.
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.
This document discusses the residential status of Hindu Undivided Families (HUFs) under Indian tax law. It defines the three possible residential statuses of an HUF as:
1) Ordinary resident: Control and management of HUF affairs situated wholly or partially in India, and karta fulfills the additional conditions of residence in India.
2) Not ordinarily resident: Control and management situated wholly or partially in India, but karta does not fulfill the additional residence conditions.
3) Non-resident: Control and management of HUF affairs situated wholly outside of India. The residential status of the karta and co-parceners is not considered - only the location of control and management determines
Objectives & Agenda :
One of the heads of income under the Income Tax Act is Income from House Property. Under this head, incomes earned from house properties are chargeable to tax. The webinar covers the aspects of basis of charging income to tax under this head, nature of house properties taxed under the Act, manner of computing income chargeable to tax under this head, deductions available under this head and eventually judicial precedents pertaining to this head of income.
The document discusses various types of perquisites that are taxable in the hands of an employee. It defines perquisites as casual emoluments or benefits provided to an employee in addition to their salary. Some key points include:
- Rent-free accommodation provided by the employer is taxable as a perquisite. The taxable amount depends on factors like location and whether the property is owned or rented by the employer.
- Other common taxable perquisites include utilities like gas, electricity and water paid by the employer, as well as facilities like transport and education for employees' families.
- There are certain exemptions, like a fixed allowance of up to Rs. 100 per child for education or Rs. 300
The document discusses the five heads of income under the Indian Income Tax Act of 1961: (1) income from salary, (2) income from house property, (3) income from business and profession, (4) income from capital gains, and (5) income from other sources. It provides details on what types of income fall under each head and the basic rules for taxing each type of income.
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.
1. The document discusses the residential status of different types of assessees under the Income Tax Act of India. It defines criteria for an individual or HUF to be considered a resident of India, resident but not ordinarily resident, or non-resident.
2. Key factors in determining residential status include the number of days spent in India in the relevant year and previous years, as well as the location of control and management of the assessee.
3. Residential status impacts the global income of an assessee that is taxable in India, with non-residents generally only being taxed on India-source income.
Income_Tax- Basic Definition_ B.Com students docxanbazhagij
This document defines key terms related to the assessment of income tax in India. It explains that an assessment is the procedure by which an assessee's income is determined by the Assessing Officer. An assessee refers to any person whose income or loss is assessed. A deemed assessee is one who is considered an assessee for another person, while an assessee in default fails to fulfill their duties under tax law. The document also defines person, assessment year, previous year, and outlines the various categories of residential status and their implications for tax incidence: resident and ordinarily resident, resident but not ordinarily resident, and non-resident.
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.
DEFNTONS of taxation law with explanationPoojaGadiya1
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
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.
An individual's residential status determines their tax liability in India. There are three residential statuses: resident and ordinary resident, resident but not ordinary resident, and non-resident. An individual's residential status depends on the number of days they spent in India in the last year and last few years. Additionally, an individual must meet further criteria to be considered an ordinary resident. The residential status principles are also applied to HUFs, firms, companies, and other entities to determine their tax obligations. An individual or entity's residential status then dictates whether their global income is subject to tax in India.
The document discusses residential status under Indian income tax law and foreign exchange regulations. It defines resident, non-resident, and ordinarily resident status and the tests to determine each. It also outlines the scope of income that is taxable in India for residents and non-residents based on their residential status. Finally, it provides background on the author and her experience in foreign exchange, taxation, and international transactions matters.
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.
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.
- 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
Presentation on Residence and tax liability, ppt on Residence and tax liabilityLeena Gauraha
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.
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.
The document defines key terms related to income tax in India such as assessee, assessment year, gross total income, previous year, and residential status. It explains that an assessee is a person liable to pay tax and includes individuals, HUFs, companies, firms, etc. Assessment year means the year following the previous year in which income is earned. Gross total income is the aggregate income from all sources. Residential status determines the scope of income taxable in India and can be resident, resident but not ordinarily resident, or non-resident. Income tax is deducted at source for certain types of income like salary, interest, rent, etc. and is considered advance tax.
This document provides an overview of income tax law in India. It discusses the key constituents of income tax law including the Income Tax Act of 1961, Income Tax Rules of 1962, circulars, notifications, judicial decisions and more. It also covers topics like residential status, previous year, assessment year, and types of income that are taxable according to residential status.
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.
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.
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 & taxation as per indian tax lawsANAND GAWADE
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.
Objectives & Agenda :
To know when income will be taxable in India and to understand the determination of residential status for individuals, HUF, Firms, AOP/BOI and Companies. To analyse the concept of POEM in relation to determination of residential status of Company.
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.
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.
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The document provides information on financial statements and the business model canvas. It defines financial statements as documents that show a company's financial status at a specific point in time, including balance sheets, income statements, cash flow statements, and statements of retained earnings. It then explains the key elements of each financial statement. The document also defines the business model canvas as a strategic management template used to develop and document business models using nine building blocks: key partners, key activities, value propositions, customer relationships, customer segments, key resources, distribution channels, cost structure, and revenue streams. It provides an example canvas for Uber.
Consumer Awareness About E-banking with special reference to Tumkur CityRashmi Gowda KM
This document provides an introduction to customer awareness towards e-banking services with reference to Tumkur City, India. It discusses the history and development of banking in India. Banking evolved from money lending in ancient times and developed significantly in medieval Italy and India. In India, banking progressed from the earliest banks in the late 18th century, through phases of nationalization in the 1950s-1980s and recent reforms. The document outlines the current banking landscape in India including public, private, and foreign banks and the impact of globalization and technology on banking services.
Inventory Management at Pepsi Co India Holding Pvt LtdRashmi Gowda KM
The study was done with the objective of finding out the efficiency of inventory management in the organization. As inventory management plays a major role in
reducing the cost of production and helps the company in increasing its profit.
The primary objective of the study is to measure the efficiency of inventory
management in the company, comparing current year data with the previous years
and suggesting the measures to be taken to improve the efficiency of inventory
management.
The study is done on the basis of secondary data. The secondary data
is collected from the sources like balance sheet, P&L account, purchases and issue
ledger etc. The data analysis
and interpretation is done using various ratio.
Learning Outcomes:
1. Exposure to the actual numbers in the industry
2. Understanding the importance of financial ratios in company’s performance
analysis.
3. Understanding about the various inventory management and controlling
procedures followed and their impact on the profitability of the company
4. Thus helped in understanding the weak and strong areas of the company
Brexit is the withdrawal of the United Kingdom (UK) from the European Union (EU). Following a referendum held on 23 June 2016 in which 51.9 percent of those voting supported leaving the EU, the Government invoked Article 50 of the Treaty on European Union, starting a two-year process which was due to conclude with the UK's exit on 29 March 2019. That deadline has since been extended to 31 October 2019.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
MATATAG CURRICULUM: ASSESSING THE READINESS OF ELEM. PUBLIC SCHOOL TEACHERS I...NelTorrente
In this research, it concludes that while the readiness of teachers in Caloocan City to implement the MATATAG Curriculum is generally positive, targeted efforts in professional development, resource distribution, support networks, and comprehensive preparation can address the existing gaps and ensure successful curriculum implementation.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
1. RESIDENTIAL STATUS OF AN INDIVIDUAL
Tax Management Concepts
Presented By: Rashmi Gowda KM
2. Tax Management Theory
■ Assessment Year [Section 2(9)]
1. Period starting from April1 and ending on March 31 of the next year.
2. Income of previous year of an assessee is taxed during the next following
assessment year.
3. It is always a period of 12 months.
■ Previous year [Section 2(34)]
1. The first previous year commences on the date of setting up of the
business/profession or the date on which the source of income newly comes into
existence and ends on the immediately following March 31.
2. The first previous year is a period of 12 months or less than 12 months. It can never
exceed 12 months.
3. The second and subsequent previous years are always of 12 months each (i.e. April
to March.)
Rule – Income of a previous year is taxable in the immediately following assessment
year.
3. Exceptions to the rule of Previous year –( When the income earned by the Assessee is taxed in
the same year?)
1. Income of a non-resident from shipping. [Section 172]
(7.5% is taxable portion)
2. Income of persons leaving India either permanently or for a long period of time. [Section
174]
3. Income of bodies formed for short durations. [Section 174A]
4. Income of a person trying to alienate his assets with a view to avoiding payment of tax; and
[Section 175]
5. Income of a discontinued business. [Section 176]
4. ■ Assessee [Section 2(7)]
“Assessee” means a person by whom income tax or any other sum of money is
payable under this Act, and includes-
(a) Every person in respect of whom any proceeding under the Act has been
taken for the assessment of his income or the income of any other person in
respect of which he is assessable;
(b) Every person who is deemed to be an Assessee, or
(c) Every person who is an Assessee in default under any provision of this Act.
■ Determination Of Residential Status
{What are the different categories into which the assessees are divided
regarding residence and how is the residence of assessees determined for
income-tax purposes? Explain.}
Total income of an assessee cannot be computed unless the person’s
residential status in India during the previous year is known.
5. Section 6 of the Income-tax Act prescribes the tests to be applied to determine the residential
status of all tax payers for the purposes of income-tax. According to the provisions relating to
residential status, a person can either be;
(i) Resident in India or
(ii) Non-resident in India
However, individual and HUF cannot be simply called resident in India. If individual or HUF is a
resident in India, they will be either;
(a) Resident and ordinarily resident in India (ROR) or
(b) Resident but not ordinarily resident in India (RNOR or NOR).
Persons other than individual and HUF will be either resident in India or non-resident in India.
6. Residential Status of Individual
Basic Conditions
1. Stay of Individual in India should be 182 days or more during relevant
Previous Year (PY); OR
2. Stay of Individual in India should be 60 days or more during relevant PY and
365 days or more during 4 PYs immediately preceding relevant PY.
Exception to Basic Conditions
In following cases, only 1st Basic condition needs to be checked:
1. Indian Citizen
- who comes on a visit to India during relevant PY; or
- who is a crew member of an Indian Ship; or
- who goes abroad for employment purposes.
2. Person of Indian Origin (who himself or his parents or his grandparents
were born in undivided India) who comes on a visit to India during relevant PY
7. Additional conditions
1. Individual should be resident (by satisfying any of the two basic conditions or Conditions first
basic condition, if falls in exception to basic conditions) in at least 2 PYs out of 10 PYs
immediately preceding relevant PY; and
2. Stay of Individual in India should be 730 days or more during 7 PYs immediately preceding
relevant PY.
NOTE:
■ Non-Resident : if the person doesn’t satisfy at least anyone of the basic condition
■ ROR: should satisfy at least any one of the basic condition, and should satisfy both the
additional condition
■ RNOR: Should satisfy any one of the basic conditions, and if doesn’t satisfy both or any one
of the additional conditions
8. Steps to be followed for determination of Residential status of a Person
Step 1: Check whether an Individual falls under any exception to basic conditions.
Step 2: If yes, check only first basic condition, otherwise check both the basic conditions. If he
satisfies any one of the basic conditions (only first in case of exception), then he would be
resident in India, otherwise he would be Non-resident in India.
Step 3: If an Individual is resident in India, then check whether he is ROR or RNOR.
Step 4: If Individual satisfies both the additional conditions, then he is ROR. Otherwise, he
would be RNOR.