TaxTMI 
TaxTMI 
How to determine the residential status of an Individual?
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....ly resident or is a resident but not ordinarily resident. Step 1 given below will ascertain whether the individual is resident or non-resident and step 2 will ascertain whether he is ordinarily resident or not ordinarily resident. Step 2 is to be performed only if the individual turns to be a resident. Step 1: Determining whether resident or non-resident Under the Income-tax Law, an individual....
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....ed the above exception to provide that the period of 60 days as mentioned in (2) above shall be substituted with 120 days, if an Indian citizen or a person of Indian origin whose total income, other than income from foreign sources, exceeds Rs. 15 lakhs during the previous year. Income from foreign sources means income which accrues or arises outside India (except income derived from a business co....
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....tal income in excess of Rs. 15 lakhs (other than from foreign sources) shall be deemed to be resident in India if he is not liable to pay tax in any country. Step 2: Determining whether resident and ordinarily resident or resident but not ordinarily resident A resident individual will be treated as resident but not ordinarily resident in India during the year if he satisfies following conditions....
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....itions or satisfies only one of the aforesaid conditions will be treated as resident but not ordinarily resident. In short, following test will determine the residential status of an individual: * If the individual satisfy any one or both the conditions specified at step 1 and satisfies any of the conditions specified at step 2, then he will become resident and ordinarily resident in India. *....