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

Mr Arvind, a non-resident individual and not a citizen of India or person of Indian origin, is in India for 70 days in the tax year and has been in India for 500 days in the four preceding years. Which statement is correct?

Arvind is resident in India. The visit-based relaxations are available only to citizens or persons of Indian origin, which he is not. His 70 days meet the 60-day test and his 500 days in the preceding four years exceed 365, so section 6(2)(b) applies.

  1. AHe is non-resident, as he stayed under 182 days
  2. BHe is resident, because he meets both 60 days and 365 days conditions of section 6(2)(b)Correct
  3. CHe is non-resident, because the 60-day condition needs 120 days
  4. DHe is resident but not ordinarily resident under section 6(13)(b)

Explanation

The relaxations in section 6(4) and 6(5) apply only to citizens or persons of Indian origin who come on a visit. Arvind is neither. He has 70 days, which is at least 60, and 500 days, which is at least 365, so he is resident under section 6(2)(b). Section 6(13)(b) also applies only to citizens or persons of Indian origin.

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