DETERMINATION OF RESIDENTIAL STATUS : PRACTICAL PROBLEMS
SPP-1
Mr. Yogendra Jain, an Indian citizen, has been staying in America for
last six years. Before this he has never been out of India in the past. During the
previous year he came to India on Ist of July 2017 to meet his brother. For this
purpose, he resides four months in Mumbai and three months in Indore. During these
seven months he also carried on business in India. He returmed to America on Ist of
February 2018. Determine his residential status.
Solution :
Not ordinarily resident- During the previous year Mr. Jain stayed in India for
7 months [i.e. more than 182 days]. He satisfies the basic condition of 182 days to
become the resident.
Mr. Jain has been India less than 730 days preceeding 7 years (he was in
America for last 6 years), so he does not fulfil the second additional condition.
Hence Mr. Yogendra Jain is therefore, ‘Not ordinarily resident’ .”
SPP-2
fort Miss Megha Batra, a citizen of India, left India on 15th of May 2017
or paar meet her uncle. She came back to India on 25th of March, 2018
and joined the Assistant Manager post in a company in Indi: tell
called ‘Resident. pany in India, Say whether she will be
Solution :
Non-resident- She will not be called ‘Resident’ i it
/ : it. She will b -resident in
India for previous year 2017-18 because she does not Satisfy E pean a the
wo basic conditions. During the previous year 2017-18, she stayed in India only for 52
lays (1.4.2017 to 15.5.2017 and 25.3.2018 to 31.3.2018). Miss Megha is, therefore,
a ‘Non-Resident’,
‘Scanned ith CamSesnerpP-3 5
Mr. Irfan Pathan is a famous cricketer. He used to go o!
so idan cin ond bes bee. ving in India ple deri iri
intern ional Matches since 2006 in India and outside India. During this period he
mined out side India for 2 years whole of the year, one time he lived in India only
fondo c295 and in remaining years he was some time in India and some time abroad.
for eequenily he was resident in India only 3 times preceeding 10 years. During the
revious year 2017-18 he remained on foreign tours from 1st of May to 15th of July
pid istof November 2017 to 31st of January, 2018. In the remaining days he lived in
india. Determine his residential status for the Assessment Year 2018-19 for Income tax
purposes
olution =
Ordinarily resident— Mr. Irfan Pathan is Ordinarily resident for the
‘Assessment Year 2018-19 because —
{) He remained in India during the previous year 2017-18 for more than 182
days. So he satisfies the basic condition.
He also fulfil both the additional conditions. He was at least 2 times
resident in last 10 years and more than 730 days in preceeding 7 years.
i)
SPP-4
Mr. Robert came to India for the first time on 1st of June 2017 from
England for his business. He retumed to his home country after staying in India at
7h Hotel in Mumbai upto 31st of October 2017. Once again he came 19 India on Ist
of January 2018 and returned on 20th February 2018. Determine his residential status
if he stayed at his agent’s house at the time of his second visit to India.
Solution :
Not ordinarily resident - Mr. Robert will be not ordinarily resident in India
because he remained in India for more than 182 days. It doesn’t make any difference,
wherever he stayed in India during his visit There is no need to see the conditions of
category ‘B’ as he has never been in India prior to the previous year.
SPP.5
‘An Indian citizen and businessman Shri Vinod Arora who resides in
Indore, went te Germany for the first time for employment on 5th of August,
2017 end came back to India on 31st of October, 2018. He has never been
out of India in the past.
(A) Determine the residential status of Sh
Year 2018-19.
(8) Will your answer be differe
lution :
Pointwise answer is as follows —
(A) si
) Situation : If leaves India for employment : Non-Resident —
Vinod ee enn of India and leaves India during the previous for
whe osment outside India and is therefore, covered under exception to basic conditions
127 aye $295 will be substituted by 182 days. During this period he was in India for
“8 (80431+30+31 +5). As he is not in India for 182 days.
Condon Ore he is a non-resident. Conditions of category
I need not be examined.
1 Vinod Arora for the Assessment
nt had he gone on a leisure trip?
B [i.e: additional
‘Scanned ith CamSesner(B) Situation : If leaves India for other purpose — Ordinarily Besant
In this case although he does not satisfy the first condition of category fi hy
satisfies the second condition as he was in India for more than 60 days in the releva,,
previous year and was also here for more than 365 days during four Preces :
previous years. He is therefore, resident in India. The exception will not be applicayy
to him because he did not leave India for the purpose of employment. He also Satistig
both the conditions of category B because he has always been in India before 5th ¢
August, 2017.
SPP-6
Mr. Backer a citizen of Germany, who has been staying in India sing
2009, leaves India for the first time on 14th July, 2017 on a visit to German
and comes back on 8th January 2018.
Determine his residential status for the previous year 2017-18.
Solution :
During the previous year 2017-18 he lived in India for following period —
April, 2017 80-day
May 31 days
dune 30 days
July 14 days
August -
September a
October _
November =F
December -
January, 2018 24 days
February 28 days
March 31 days
188 days
He is ordinarily resident in |
hee in India because he fulfils -
‘ondition, he lives j i previou:
: n, he lives in India at least 182 days during the previ
(i) both additional conditions, becai turin,
He itions, use he has always been in India during the
SPP.7
Mr. Ai
compet Arun abel Zot an offer for service in a Hongkong base
appointment he was age eee He had never been out of Inet letter o!
by vihich he should leave [9.01% 299 day up to 318i October 2018 Ree eter
by which he leave India in order to avoid hi fond eae netted
in Indie ° avoid his Hongkong income from bein
Ans. :
ns: : He should leave India before 28th September 2018
to get a non-resident status
‘Scanned ith CamSeener