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

Rajesh, an Indian citizen, left India on 1 October in a tax year to take up employment in Dubai. He was in India for 150 days in that tax year and had been in India for 1,000 days in total in the four preceding years. What is his residential status for that tax year under the Income-tax Act, 2025?

Rajesh is a non-resident. He stayed only 150 days, below the 182-day test, and the alternative 60-day plus 365-day test is switched off for an Indian citizen who leaves India during the year for employment abroad. So neither condition for residence is satisfied.

  1. AResident and ordinarily resident
  2. BResident but not ordinarily resident
  3. CNon-residentCorrect
  4. DDeemed resident because he is a citizen of India

Explanation

He was in India for 150 days, which is below 182, so section 6(2)(a) fails. The alternative test in section 6(2)(b) (60 days plus 365 days) does not apply to a citizen who leaves India in the tax year for employment outside India, as per section 6(3)(b). Applying the 60/365 test anyway is the trap that gives 'resident'. He is therefore non-resident.

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