Under Section 6 ITA 1961, an INDIVIDUAL is a RESIDENT in India for a previous year if he/she:
Aonly has Indian citizenship (cf. Income Tax Act 1961, Section 6) (cf. Income Tax Act 1961, Section 6) (cf. Income Tax Act 1961, Section 6)
Bis in India for 182 days or more during the previous year; OR for 60 days or more during the previous year AND 365 days or more in 4 preceding years
Conly stays for one day (cf. Income Tax Act 1961, Section 6) (cf. Income Tax Act 1961, Section 6) (cf. Income Tax Act 1961, Section 6)
Donly has Indian property (cf. Income Tax Act 1961, Section 6) (cf. Income Tax Act 1961, Section 6) (cf. Income Tax Act 1961, Section 6)
Answer & Solution
Correct answer: B. is in India for 182 days or more during the previous year; OR for 60 days or more during the previous year AND 365 days or more in 4 preceding years
1. Section 6(1) Income Tax Act 1961 defines residential status of an INDIVIDUAL:
2. (a) Basic conditions: (i) IN INDIA for 182 days or more during the previous year; OR (ii) IN INDIA for 60 days or more during the previous year AND 365 days or more in 4 immediately preceding years.
3. Exception: 60-day rule extended to 182 days for Indian citizens leaving India as crew or for employment, or for visiting Indians.
4. RESIDENT and ORDINARILY RESIDENT (ROR) status: ROR if additionally resident in 2 of 10 preceding years AND 730+ days in India in 7 preceding years.
5. Resident but Not Ordinarily Resident (RNOR) and Non-resident (NR) follow.
6. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 6_
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