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RESIDENTIAL STATUS
AS
PER INCOME TAX ACT |
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Q) What
is ‘Residential Status’? A) Residential
Status of a person determines whether the person’s income is chargeable to
tax in India or not. Q) Why
is it necessary to determine residential status of a person? A) It is necessary because total income of a person cannot be assessed until and unless his/ her residential status is determined as per the rules prescribed in the Income tax Act’ 1961. Q) What are the categories of
Residential Status? A) In
case of Individuals and Hindu Undivided Family (HUF)
(i) Resident
and Ordinarily Resident. (ii) Not
Ordinarily Resident.
II. NON RESIDENT Refer following
table for more clarity on Residential Status: -
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