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

Mr Sharma is a citizen of India who lives in Singapore. In the current tax year he visits India for 100 days. His total income, other than income from foreign sources, is Rs. 8 lakh, and he was in India for 400 days in total in the four preceding tax years. What is his residential status for the current tax year under the Income-tax Act, 2025?

He is a non-resident. As a citizen visiting India from abroad with Indian-source income of only Rs. 8 lakh, the 60-day plus 365-day alternative test does not apply to him. His 100-day stay is below 182 days, and deemed residence needs income above Rs. 15 lakh.

  1. AResident and ordinarily resident
  2. BResident but not ordinarily resident
  3. CNon-residentCorrect
  4. DDeemed resident under the section 6(7) rule

Explanation

Mr Sharma is a citizen of India who comes on a visit to India from outside. For him the 60-day condition applies as 60 days only if Indian-source total income is up to Rs. 15 lakh. His income is Rs. 8 lakh, so the 60-day test is switched off. His stay of 100 days is less than 182 days, so he fails the basic condition. Deemed residence needs income above Rs. 15 lakh, so he is a non-resident. The distractor treating 100 days plus 400 days as enough ignores the sub-section (4) relief.

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