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

Rohan, an Indian citizen, is resident in India in the current tax year under the 182-day test. He was non-resident in 7 of the ten preceding tax years. He was in India for a total of 800 days in the seven tax years preceding the current year. What is his status in the current year?

Rohan is resident and ordinarily resident. To be not ordinarily resident he would need to have been non-resident in nine of the ten preceding years or to have stayed 729 days or less in the seven preceding years. He satisfies neither condition.

  1. AResident and ordinarily residentCorrect
  2. BResident but not ordinarily resident
  3. CNon-resident
  4. DResident but not ordinarily resident only if he is not a citizen

Explanation

Not ordinarily resident status requires either non-residence in nine of the ten preceding years, or a stay of 729 days or less in the seven preceding years. Rohan was non-resident in only 7 of the ten years, so the first condition fails. His stay of 800 days exceeds 729 days, so the second condition fails too. He meets neither condition, so he is resident and ordinarily resident.

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