Residential Status (Section 6) BBA (MOM)

Taxation Law III Semester

RESIDENTIAL STATUS OF AN INDIVIDUAL {Section 6(1)}

Basic Condition(BC):
1. If the individual stayed in India for a period of 182 DAYS OR MORE during the Relevant Previous Year OR
2. If the individual stayed in India for a period of 60 DAYS OR MORE during Relevant Previous Year and 365 DAYS
OR MORE DURING 4 YEARS immediately preceding the previous year

Additional Conditions(AC):
1. If the individual stayed in India in AT LEAST 2 OUT OF 10 PREVIOUS YEARS immediately preceding the relevant
Previous year.
2. If the individual stayed in India for 730 DAYS OR MORE DURING 7 YEARS immediately preceding the relevant
Previous year.

CONCEPTS
a. When an individual is said to be resident in India
 WHEN SATISFY ANY OF BC
b. When an individual is said to be resident and ordinarily resident in India
 SATISFYING 1BC and BOTH AC
c. When an individual is said to be resident but not ordinarily resident. {Section 6(6)a}
 SATISFYING 1BC BUT NOT BOTH AC
d. When an individual is said to be non-resident in India. {Section 2(30)}
 DOES NOT SATISFY ANY OF BC AND BOTH OF AC
RESIDENTIAL STATUS OF A HUF {Section 6(2)}
1. Resident in India, IF
 Control and management of the office is wholly or partly situated in India during relevant previous year.
 Control and Management is situated at that place where decisions relating to the affairs of the HUF are
taken.
i. Resident and ordinarily resident in India, if manager of resident HUF satisfies both the additional conditions.
ii. Resident but not ordinarily resident in India, if manager of resident HUF does not satisfy any one of the
additional conditions.
2. Non-Resident in India, IF
 Manager of resident HUF does not satisfy any one of the additional conditions.
RESIDENTIAL STATUS OF A COMPANY {Section 6(3)}
1. Indian Company- It is always resident in India.
2. Foreign Company
a. It is resident in India if control and management of its affairs is situated wholly in India during
relevant previous year.
b. It is non-resident in India if control and management of its affairs is situated wholly or partly
outside India.
Control and Management of company’s affairs are generally said to be situated at that place where meetings of its
board of directors are held.
RESIDENTIAL STATUS OF A FIRM/AOP/BOI/{Section 6(4)}
1. Resident in India, IF
 Control and management of the office is wholly or partly situated in India during relevant previous year.
2. Non-Resident in India, IF
 If control and management of affairs is wholly situated outside India.

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