Is the residential status of a person relevant for determining the taxability of the income in his hands?

Residential status determines taxability of income; the nature of the income also governs tax liability under income tax law.

Residential status is decisive for whether income is taxable in an individual's hands. Taxability depends on two operative elements: residential status as defined under the income tax statute, and the nature of the income earned; both must be considered together to determine the scope of tax liability.