Computation of Total Income – Residential Status

INCOME TAX CALCULATION – RESIDENTIAL STATUS

• Resident & Ordinary Resident
• Resident But not Ordinary Resident
• Non –Resident

Residential Status of an Individual

Based on the duration for which individual present in India determine the residential status.

Resident: An individual is said to be resident in India in any previous year if he fulfills any one of the following two conditions:

• He is in India in that year for a period of 182 days or more; (Should be determined total no days stay)
• He is in India for a period of 60 days or more during the previous year and 365 days or more during the 4 years preceding that previous year.

Resident and ordinarily resident: If any individual fails to satisfy below both conditions he will be treated as Resident and ordinary resident.

• He has been a non-resident in India in 9 out of the 10 preceding previous years; And
• He has been in India for a period not exceeding 729 days during the last 7 years before the assessment year.

 

Resident, But not ordinarily resident: If an individual satisfy the conditions for Resident But does not fall under Ordinary resident defined above treated as not Ordinary resident.

Non-resident: If an individual does not satisfy any of the conditions that require to be qualifying as resident, will be considered as non-resident.

Computation of Total Income – An Individual – Step by Step Procedure :

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