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CMA Intermediate · Direct and Indirect Taxation · Residential Status and Scope of Total Income

Under the Income-tax Act, 2025, a Hindu undivided family (HUF) is a resident in India in a tax year unless:

An HUF is resident in India in a tax year unless the control and management of its affairs is situated wholly outside India during that year. The manager's status or the coparceners' stay abroad does not decide basic residence; it matters only for the ordinarily resident test.

  1. Aits manager is a non-resident in that tax year
  2. Bthe control and management of its affairs is situated wholly outside India during that yearCorrect
  3. Ca majority of its coparceners stay outside India for 182 days
  4. Dits income from foreign sources exceeds its Indian income

Explanation

Section 6(9) treats an HUF, firm or other association of persons as resident unless control and management of its affairs is situated wholly outside India in the tax year. The manager's own residential status matters only for deciding whether the HUF is ordinarily resident, not for basic residence. The option on the manager is therefore wrong.

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