Basic Concepts of Taxation for CFP – 2
Posted by Prashant Shah on March 27, 2012
Calculation of Residential Status
Kinds of Residential Status:
- Resident in India
- Resident and Ordinarily Resident
- Resident but Not Ordinarily Resident
- Non Resident in India
Calculation of Resident and Ordinarily Resident:
| Basic condition 1 |
He is in India in the previous year for a period of 182 days or more |
| Basic condition 2 |
He is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year |
| Additional condition 1 |
He has been resident in India in last 2 out of 10 PY immediately preceding the relevant PY |
| Additional condition 2 |
He has been in India for a period of 730 days or more during 7 years immediately preceding the relevant PY |
- He satisfies at least one of the basic condition
- Both the additional condition
An individual who satisfies at least one of the basic conditions but does not satisfy the two additional conditions, is treated as RBNOR in India. An individual becomes RBNOR in any of the following circumstances:
| Case 1 |
If he satisfies at least one of the basic conditions but none of the additional conditions |
| Case 2 |
If he satisfies at least one of the basic conditions and one of the two additional conditions |
An individual is a Non-resident in India if he doesn’t satisfy any of the basic conditions
|
Time and place of accrual/receipt of income |
ROR |
RBNOR |
NR |
| Received or deemed to be received in India by him or on his behalf |
Y |
Y |
Y |
| Accrues or arises or deemed to accrue or arise to him in India |
Y |
Y |
Y |
| Accrues or arises outside India and received outside India from a business controlled or setup in India |
Y |
Y |
N |
| Accrues or arises outside India and received outside India from a business controlled or setup outside India |
Y |
N |
N |
PVS (Prashant V Shah) 
Manish said
dear sir if assessee earns interest on uk bonds and he is resident but not ordinarily resident in india and no info is given in the question that in which country he received this interest amt so in this case wht should we presume can we presumed that he received this interest in abroad bcoz in my book they presumed in this way but in the rules as u have stated above that it should be deemed to be received in india so i m confused between deemed and presumption?
Prashant Shah said
Dear Manish,
It may be a vaild assumption to assume that interest has been paid in UK as the bonds are UK bonds. We has a case of RBNOR, hence no tax liability in India.
Regards,
Prashant.