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CA Intermediate · Taxation · Residential Status and Scope of Total Income

Mrs. Meera Iyer was resident in India in tax year 2026-27. In nine of the ten tax years preceding 2026-27 she was non-resident, and her stay in India during the seven years preceding 2026-27 was 800 days in total. She stayed 200 days in the year. Which is her status?

Mrs. Iyer is resident but not ordinarily resident. She is resident because she stayed 200 days. To be ordinarily resident she must meet both additional conditions, but she was resident in only one of the ten preceding years, so she fails the first condition despite her 800 days.

  1. AResident and ordinarily resident
  2. BResident but not ordinarily residentCorrect
  3. CNon-resident
  4. DResident, but ordinarily resident only for Indian income

Explanation

To be resident and ordinarily resident she must have been resident in at least 2 of the 10 preceding years and have stayed 730 days or more in the 7 preceding years. She was resident in only 1 of 10 years, so the first condition fails even though 800 days exceeds 729. Failing one condition makes her resident but not ordinarily resident.

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