DETERMINATION OF RESIDENTIAL STATUS : PRACTICAL PROBLEMS SPP-1 Mr. Yogendra Jain, an Indian citizen, has been staying in America for last six years. Before this he has never been out of India in the past. During the previous year he came to India on Ist of July 2017 to meet his brother. For this purpose, he resides four months in Mumbai and three months in Indore. During these seven months he also carried on business in India. He returmed to America on Ist of February 2018. Determine his residential status. Solution : Not ordinarily resident- During the previous year Mr. Jain stayed in India for 7 months [i.e. more than 182 days]. He satisfies the basic condition of 182 days to become the resident. Mr. Jain has been India less than 730 days preceeding 7 years (he was in America for last 6 years), so he does not fulfil the second additional condition. Hence Mr. Yogendra Jain is therefore, ‘Not ordinarily resident’ .” SPP-2 fort Miss Megha Batra, a citizen of India, left India on 15th of May 2017 or paar meet her uncle. She came back to India on 25th of March, 2018 and joined the Assistant Manager post in a company in Indi: tell called ‘Resident. pany in India, Say whether she will be Solution : Non-resident- She will not be called ‘Resident’ i it / : it. She will b -resident in India for previous year 2017-18 because she does not Satisfy E pean a the wo basic conditions. During the previous year 2017-18, she stayed in India only for 52 lays (1.4.2017 to 15.5.2017 and 25.3.2018 to 31.3.2018). Miss Megha is, therefore, a ‘Non-Resident’, ‘Scanned ith CamSesnerpP-3 5 Mr. Irfan Pathan is a famous cricketer. He used to go o! so idan cin ond bes bee. ving in India ple deri iri intern ional Matches since 2006 in India and outside India. During this period he mined out side India for 2 years whole of the year, one time he lived in India only fondo c295 and in remaining years he was some time in India and some time abroad. for eequenily he was resident in India only 3 times preceeding 10 years. During the revious year 2017-18 he remained on foreign tours from 1st of May to 15th of July pid istof November 2017 to 31st of January, 2018. In the remaining days he lived in india. Determine his residential status for the Assessment Year 2018-19 for Income tax purposes olution = Ordinarily resident— Mr. Irfan Pathan is Ordinarily resident for the ‘Assessment Year 2018-19 because — {) He remained in India during the previous year 2017-18 for more than 182 days. So he satisfies the basic condition. He also fulfil both the additional conditions. He was at least 2 times resident in last 10 years and more than 730 days in preceeding 7 years. i) SPP-4 Mr. Robert came to India for the first time on 1st of June 2017 from England for his business. He retumed to his home country after staying in India at 7h Hotel in Mumbai upto 31st of October 2017. Once again he came 19 India on Ist of January 2018 and returned on 20th February 2018. Determine his residential status if he stayed at his agent’s house at the time of his second visit to India. Solution : Not ordinarily resident - Mr. Robert will be not ordinarily resident in India because he remained in India for more than 182 days. It doesn’t make any difference, wherever he stayed in India during his visit There is no need to see the conditions of category ‘B’ as he has never been in India prior to the previous year. SPP.5 ‘An Indian citizen and businessman Shri Vinod Arora who resides in Indore, went te Germany for the first time for employment on 5th of August, 2017 end came back to India on 31st of October, 2018. He has never been out of India in the past. (A) Determine the residential status of Sh Year 2018-19. (8) Will your answer be differe lution : Pointwise answer is as follows — (A) si ) Situation : If leaves India for employment : Non-Resident — Vinod ee enn of India and leaves India during the previous for whe osment outside India and is therefore, covered under exception to basic conditions 127 aye $295 will be substituted by 182 days. During this period he was in India for “8 (80431+30+31 +5). As he is not in India for 182 days. Condon Ore he is a non-resident. Conditions of category I need not be examined. 1 Vinod Arora for the Assessment nt had he gone on a leisure trip? B [i.e: additional ‘Scanned ith CamSesner(B) Situation : If leaves India for other purpose — Ordinarily Besant In this case although he does not satisfy the first condition of category fi hy satisfies the second condition as he was in India for more than 60 days in the releva,, previous year and was also here for more than 365 days during four Preces : previous years. He is therefore, resident in India. The exception will not be applicayy to him because he did not leave India for the purpose of employment. He also Satistig both the conditions of category B because he has always been in India before 5th ¢ August, 2017. SPP-6 Mr. Backer a citizen of Germany, who has been staying in India sing 2009, leaves India for the first time on 14th July, 2017 on a visit to German and comes back on 8th January 2018. Determine his residential status for the previous year 2017-18. Solution : During the previous year 2017-18 he lived in India for following period — April, 2017 80-day May 31 days dune 30 days July 14 days August - September a October _ November =F December - January, 2018 24 days February 28 days March 31 days 188 days He is ordinarily resident in | hee in India because he fulfils - ‘ondition, he lives j i previou: : n, he lives in India at least 182 days during the previ (i) both additional conditions, becai turin, He itions, use he has always been in India during the SPP.7 Mr. Ai compet Arun abel Zot an offer for service in a Hongkong base appointment he was age eee He had never been out of Inet letter o! by vihich he should leave [9.01% 299 day up to 318i October 2018 Ree eter by which he leave India in order to avoid hi fond eae netted in Indie ° avoid his Hongkong income from bein Ans. : ns: : He should leave India before 28th September 2018 to get a non-resident status ‘Scanned ith CamSeener