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CMA Final · Direct Tax Laws and International Taxation · Assessment of Individuals including Non-residents

Meera, an Indian citizen, lives abroad and visits India for 100 days in the tax year. Her total income, other than income from foreign sources, is Rs. 8 lakh, and she was in India for 400 days in total across the four preceding tax years. Under the Income-tax Act, 2025, what is her residential status for the tax year?

Meera is non-resident. As a citizen of India visiting from abroad, the 60-day plus 365-day alternative test does not apply to her, and her 100-day stay is below 182 days. Her income is under the Rs. 15 lakh threshold, so the 120-day condition is not relevant.

  1. AResident, because she was in India for 365 days or more in the four preceding years and for 60 days or more in the year
  2. BNon-resident, because the 60-day condition does not apply to a citizen of India who comes on a visit to IndiaCorrect
  3. CResident but not ordinarily resident, because she stayed fewer than 182 days
  4. DNon-resident, because her stay was less than 182 days and her income is below Rs. 15 lakh

Explanation

Meera is a citizen of India who, while outside India, comes on a visit. Section 6(4) therefore switches off the 60-day and 365-day alternative test in section 6(2)(b). The enhanced 120-day condition in section 6(5) applies only if her non-foreign income exceeds Rs. 15 lakh, and it does not here. She stayed 100 days, fewer than 182, so she is non-resident. Option A ignores section 6(4).

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