The document discusses the determination of residential status and its significance for tax liability in India. It outlines the different types of residential statuses (ordinarily resident, resident but not ordinarily resident, non-resident) for individuals, HUFs, firms, companies and others. It also examines how residential status impacts whether income earned in or outside India is taxable, depending on whether the income accrues or arises in India. The relationship between residential status, scope of tax and incidence of tax for different entities is also summarized.