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

Ms. Kavya Rao, an Indian citizen employed in Bengaluru, left India on 1 June 2026 for employment in Dubai and stayed there for the rest of tax year 2026-27. Before leaving she was in India for 62 days of the tax year. She had been in India for 900 days in the four preceding years. What is her residential status for tax year 2026-27?

Kavya is non-resident. For an Indian citizen who leaves India during the tax year for employment abroad, the 60-day alternative condition is not available, so she must have stayed 182 days or more. With only 62 days in India she fails the test.

  1. AResident, because she was in India for 60 days or more and 365 days or more in the preceding four years
  2. BNon-resident, because the 182-day period applies to a citizen who leaves for employment abroadCorrect
  3. CResident but not ordinarily resident, because she left India for employment
  4. DNon-resident, because she is in India for fewer than 120 days

Explanation

For a citizen who leaves India in the tax year for employment outside India, the 60-day alternative condition does not apply; only the 182-day condition applies. She was in India for 62 days, below 182, so she is non-resident. Option 1 ignores this exception.

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