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Showing posts with the label Residential status under income tax

Residential Status Under Income Tax Act, 1961

Hindi Income tax Accounting Before calculating taxable income first thing is the need that we should know about the residential status of persons. Residential Status plays important role in income tax act. Residential status determines the taxable income which generated from activity performing in India or another country. Types of Residential status Residents 1) Ordinary residents  2) Non-ordinary residents Non-residents Note:-Only individual and HUF can be ordinary or Non-ordinary residents.All other classes of assessees can be either a resident or non-resident. Primary Conditions:- The residential status of Individual/HuF An Individual is said to be Resident in India if he satisfies at least one basic conditions: He is in India at least 182 days in previous years (Financial Year) Or He is in India for 60 days or more during that financial year and has been in India for 365 days or more during 4 previous years immediately preceding the relevant financ

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