Skip to content

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

Which statement about a person who is resident in India in a tax year for one source of income, under the Income-tax Act, 2025, is correct?

He is resident for every other source of income in that tax year. The Act says a person resident for any one source is deemed resident for all other sources, so residential status is a single determination for the year, not source by source.

  1. AHe is resident for every other source of income in that tax yearCorrect
  2. BHe may be non-resident for foreign income of that year
  3. CResidence is decided separately for each source
  4. DHe is resident only for Indian-source income

Explanation

The Act provides that a person resident in India in a tax year for any source of income is deemed resident for each of his other sources of income in that tax year. Residential status is therefore determined once for the year, not source by source. The other options contradict this rule.

Did you get it right without looking?

One question tells you little. A timed set on Assessment of Individuals including Non-residents shows your real accuracy, how long you take and where you lose marks.

Practise Assessment of Individuals including Non-residentsFree diagnostic mock

More Assessment of Individuals including Non-residents questions