What does it mean if someone is in residential?

What does it mean if someone is in residential?

What does it mean if someone is in residential?

 In this article we will learn how to know  the residents and status of an  individual as for Income Tax Act 1961 in  accidential status of an individual is  defined under Section six of section one  an individual can become either resident  of India or not as it were of India  there is nothird option if an  individual wants to become resident of  India he will have to fulfill the basic  condition there are two basic condition  first basic condition and second basic  condition this both the basic condition  is an option you can fulfill either  first or second but initially

you will  have to check the first basic condition  then only you can go for the second  basic condition you cannot jump directly  on second basic condition but if you are  going for second basic condition there  are two parts in second basic condition  Part A and Part B you will have to  f

ulfill both it is not an option it is  mandatory for you to fulfill both the  part of second basic condition so let us  try to understand the first basic  condition the first basic condition is  residing 182 days or more in India  during previous year above previous  series 2016-17 so in 1

617 you will have  to stay in a stay in India for a minimum  period of 182 days if you are staying in  India for a minimum built on 182 days in  the year 2016 7 in then you will become  resident of India if you are not able to  fulfill this first basic condition then  you have one more opt

ion that is second  basic condition but if you are going for  a second basic condition you will have  to fulfill both the part of second basic  condition  so let us understand the first part of  circuit basic condition reciting 60 days  or more cleaning care during previous  year you canno

t stay for 182 days but at  least stay for 60 days 182 days is a  proc six-month 60 days is aprox 2 months  so that is manageable so the first part  of second basic condition says you will  have to stay in India for a minimum  period of 60 days in the previous year  along with this you wil

l have to fulfill  the second part and the second part is  residing 7th sorry 365 days or more in  India during 4 preceding previous year  now what is preceding previous year the  year immediately preceding when in fact  I can say all the year preceding the  previous year will be termed as

in  preceding previous year so our previous  it is 2016-17 that means all the year  before 2016 17 will be termed as in  preceding previous you so what the  second part says you will have to stay  in India for a minimum period of 365  days during the 4 preceding previous  year so if you f

ulfill both the part of  second basic condition you will become  resident of India so when an individual  can become resident of India if he  fulfils either of this basic condition  either 182 days or more or 60 days or  more and 365 days or more if you fulfill  any of this basic condition

you will  become resident of India if you do not  fulfill any of this condition then you  will become non-resident of India  now wherever we have section at law for  each and every section Act law we have  exceptions hence for this section that  is section 6 subsection 1 we have an  excep

tion it is exception to section 6  subsection 1 there are two exceptions  first exception second exception so  first exception says Indian citizen  leaves India during the previous year  now you are an Indian citizen what is  important in this exception is that you  are an Indian citizen a

nd you are  leaving India during the previous year  for employment outside India now if you  talk about employment there are two  possibilities either for taking an  employment or for the purpose of their  progress now what is the difference  between for taking an employment terms  and for

the purpose of employment for  taking an employment means you are  leaving India you are getting an  employment job outside India so commonly  you will leave India and you will stay  in the foreign country for the job and  what you mean before the purpose of  implement you are an official

tour or  you got some project in the foreign  country for for a month or maybe for two  month or for six month so you will  complete that project and again you will  come back to India  so that is for the purpose of employment  so in case of purpose of employment you  are not completely l

eaving India so I  hope you have understood the difference  between for taking an employment and for  the purpose of Transjordan  the second part of first exception is as  a member of shipping trail so if you are  an Indian citizen you are leaving India  during the previous year as a numbe

r of  shipping view so you are falling in  exception so the first exception says  Indian citizen leaves India trading  previous year either for employment  outside India or as a number of ship in  Creole second exception a person of  Indian origin residing outside visits  India during the

previous year now what  do you mean by Indian origin born in  India lot of some parents suppose if you  are not born in India either of your  parents are born in India still you are  a person of Indian origin let us assume  even your parents are not born in India  still you can become a pe

rson of Indian  origin condition if either of your grand  parents are born in India  so you're a person of Indian origin you  are residing outside definitely you will  reside outside visits India during the  previous here then you are following an  exception now in both the exception if  y

ou see they are talking about Indian  and the first exception they are talking  about you can citizen and in this  section the second exception they are  talking about Indian origin so if you  are a foreign citizen you will not fall  in this exception what will happen if  you fall in this

exception if you fall  in this exception and you want to become  resident of India then it will it is  compulsory for you to fulfill the first  basic condition you will not get the  option of second basic condition that  means if you want to become resident of  India mandatory you will hav

e to stay in  India for a minimum period of 180  degrees  because you are following an exception  and as you're falling in exception you  will not get the often of second basic  condition that the 60 is in the previous  year and 365 days in before proceeding  previous here okay now what is

next  once you become resident of India what  is the next step once you become  resident of India further we will have  to find out whether you are resident in  ordinary resident or resident but not  ordinary resident by the way why do we  understand about all this thing resident  of Indi

a or non resident of India our  resident an ordinary yesterday  interested in but not ordinary yesterday  why should we learn all this thing the  whole thing ends up with the tax the tax  liability will defer for each and every  residential status for resident in  ordinary resident the tax

the beauty or  the taxable income will be different  from the resident but not ordinary  resident the taxability of  NRI will differ or taxable income will  differ with resident an ordinary  resident or a step but not ordinary  resident so unless we know whether you  are resident and ordi

nary resident  resident but not ordinary resident or  non-resident of India it will be  impossible for us to calculate your  taxable income thus this resolution the  residential status is very important now  coming back to this point if you want to  become resident and ordinary destined  y

ou will have to fulfill the additional  condition there are two additional  condition additional condition number  one additional condition number two it  is not an option it is compulsory for  you to fulfill all the additional  condition so what is the first  condition reciting seven thir

ty days or  more in India during seven preceding  previous year so in seven preceding  previous year you will have to stay in  India for a minimum period of seven  thirty days then what is the second  additional condition must be a resident  of India in at least two out of ten  preceding p

revious year how to find out  resident of India then you don't have to  go back for this basic condition with  the help of basic condition you will  come to know about the residential  status of an individual whether he is  resident of India or non-resident of  India so if you fulfill the

basic  condition you will become resident of  India if you are not able to fulfill the  basic condition you will become not  resident of India so second additional  condition says you should be resident of  India in at least two out of ten  preceding previous year so if you  fulfill both t

he addition condition you  will become resident and ordinary newest  resident if you do not fulfill both or  if you fulfill only one of this  additional condition you will become  desolate but not ordinary resident there  are a few steps which we are supposed to  follow for calculating the

residential  status of an individual the first step  is introduction you will have to  introduce the person of whose you are  calculating or of an individual of whose  you are calculating the residential  status whether he is an Indian citizen  or foreign citizen but the exception is  app

licable to him or not applicable to  him so all this thing you will have to  mention in the introduction second step  basic foundation those two basic  condition that is residing 182 days or  more in India during previous here or  starting 60 days or more in India during  and restarting 36

5 days or more in  Indonesian for Priscilla geisha you will  have to make change here it it thirsted  you will have to calculate and check  whether he is fulfilling the basic  condition or not in the Forester you  will have to explain the calculation of  third step actually for how many da

ys he  was in India well then he was in India  for 182 days or not if not 182 days  whether he was in India for 60 days or  not whether he was in India for 365 days  or not in the for Pacific rivers here  all this thing even have to explain in  this step now here in this step you will  com

e to know whether he is resident of  India or non-resident of India suppose  if he becomes resident of India then you  will have to go for the new paragraph  next step now here you will have to  mention as it becomes resident of India  now further we will have to find out  whether he is re

sident and ordinary  resident or resident but not ordinary  discipline in the next step you will  have to mention both the additional  condition that is reciting 730 days of  modern India during seven visiting leave  Asia and must be a resident of again at  least two out of ten Pacific pre

viously  in the next step you will have to  calculate and check whether he is  fulfilling the additional condition or  not  eight step you will have to explain the  calculation of seven step now in here in  the explanation you will have to  actually give the number he was in India  for sev

en thirty days in the seventh  visiting previous yoga rod whether he he  is resident of Indian at least two out  of ten whistling previous or not all the  see the actual eighth I will have to  given this step and the last step  conclusion my here you will have to  conclude whether he is re

sident and  ordinary resident or a stillbirth not  ordinary resident if you are following  all these steps from step number one to  nine then your conclusion cannot be nor  does it interfere  why now while you going for 5th 6th 7th  and 8th step because he became resident  of India so here

you are saying that he  became resident of India and in  conclusion you are saying that he is  non-resident of India so it will be  wrong so if your if you are following  all these steps your conclusion  conclusion should be either resident and  ordinary resident or resident but not  ordi

nary visitor it cannot be known as  intent of India okay so what will happen  if you come to know that he's NRI in  this step here in this step if you come  to Nadi's NRI then directly you will  have to jump on conclusion number 9 then  you will have to skip step number 5 6 7  & 8 because

it is not required this 5 to  8 is required if he becomes resident of  India so in that case your conclusion  will be mister so-and-so is not resident  of India so these are the 9 steps which  we are supposed to follow for  calculating the residential status of an  individual there are few

important  points which are related to individual  the first in case of non-resident of  India ignore step number 5 - step number  8 this I have already explained you in  the previous slide next point the day of  arrival to India and day of departure  from India is to be considered in Ind

ia  so both the day the day of arrival and  the day of departure both you will have  to consider in India for example suppose  if he is arriving in India in the night  at 11:45 p.m. then you will have to  assume that whole day he was in India  and same for the departure also suppose  if he

is departing from India early in  the morning let's say around the one  o'clock in the morning so again in this  case even though he was not in India you  will have to assume that the day in the  day on which he departed he was in India  next point a person may be resident in  two or more

countries at the same time a  person can be a resident of two  countries and the same time for example  in Aspen Income Tax Act for India if you  want to become resident of India you  will have to fulfill the basic condition  and if you see the second basic  condition it says residing six

ty days or  more so you stay in India for a minimum  period of 60 days and fulfill 365 days  or more in focus in previous year so  sixty days in India and suppose in any  other country if the condition is let's  say for 45 days so you can be sixty you  can be resident of India as well as

resident of that particular company  because you can fulfill all the  conditions here you can stay in India  for a sixty days and there you can go  and stay for 45 days so you can be  resident of two or more countries but  you cannot be a citizen of two different  countries so let me repea

t this sentence  you can be resident of 200 countries but  you cannot be a citizen of two different  countries citizenship you will only have  one country next point it is not  essential that this stage should be at  the same place of course say if you are  coming to Mumbai it is not manda

tory for  you to stay in Mumbai you only staying  Mumbai for 182 days then only you leave  otherwise you will become known as no it  is not like that you can go to Kerala  then you can go to Jammu you can go to  Assam  you can travel any place in India but  you will have to be in India the

total  number of days you will have to fulfill  in India next point it is equally not  necessary that stage should be  continuous now the condition says  reciting 182 days or more in India  during previous year that doesn't mean  that you once you arrive in India you  will have to stay in

India for a minimum  rate of 180 to today's then only you can  it's not like that you can take a break  let's say suppose if you are coming in  the month of April then again go back to  your country in the month of May again  come back to India in the month of June  again go back to your

country July you  can take a break but total number of  days in India should be 182 days or if  you're going for second basic foundation  it should be 60 days next point the  place of strain or the purpose of stage  is not material while you are coming to  India that is not important for income  tax thank you

Post a Comment