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Residential status and scope of income

RESIDENTIAL STATUS [SECTION 6]

The incidence of tax on any assessee depends upon his/her residential status under the Act. For all purposes of income tax, taxpayers (individuals and HUF) are classified into three broad categories based on their residential status viz.

  • Resident and ordinarily resident
  • Resident but not ordinarily resident
  • Non-resident

The scope of the total income of an assessee is based on the following considerations:

  • Depends on the residential status of the assessee;
  • The place of accrual or receipt of income, whether actual or deemed;
  • The time at which income had accrued to or was received by or on behalf of the assessee.

Our professional consultancy team will provide you with the assistance you need to determine your residency status and whether your income is taxable in India.