Tax incidence on an assesee depends upon his residential status. For
instance, whether an income, accrued to an individual outside India is taxable
in India. Likewise whether income earned by a foreign national in India or
outside India depends upon residential status of individual rather than on his
Even a citizen may or may not be resident in India. Under Income Tax Act 1961
in section 6 certain conditions are given to determine whether an assesee is
resident in India or not.
In this article we will study about determination of residential status of
There are three residential status:
- Resident and ordinary Resident
- Resident but not ordinary Resident
- Non resident.
Residential status can be determined of different taxable entities like A
hindu undivided family, an individual, a firm or association of person , joint
stock company and any other person like local authority or artificial or