Residential status of Individuals
Under section 6(1), an individual is said to be resident in
India in any previous year, if he satisfies any one of the following
conditions
(i) He has been in India during the previous year for a total
period of 182 days or more, or
(ii) He has been in India during the 4 years immediately
preceding the previous year for a total period of 365 days or more and has been in India for at
least 60 days in the previous year. If the individual satisfies any one of the conditions
mentioned above, he is a resident. If both
the above conditions are not satisfied, the individual is a non-resident.
Residential status of HUF
A HUF would be resident in India if the control and
management of its affairs is situated whollyor partly in India. If the control
and management of the affairs is situated wholly outside India itwould become a
non-resident. The business may be done
from outside India and yet its control and management may be wholly within
India. Therefore, control and management of a business is said to be situated
at a place where the head and brain of the adventure is situated. The place of
control may be different from the usual place of running the business and
sometimes even the registered office of the assessee. This is because the
control and management of a business need not necessarily be done from the
place of business or from the registered office of the assessee. But control
and management do imply the functioning of the controlling and directing power
at a particular place with some degree of permanence.
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