Income Tax Residency in India
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Questions and Answers

What is the minimum number of days an individual must stay in India during the previous year to be considered a resident?

  • 120 days
  • 60 days
  • 182 days (correct)
  • 300 days

    • Which of the following is NOT a condition for determining ordinary residency?

  • Staying for 60 days or more in the previous year
  • Staying for 60 days or more in the previous year and 365 days over four years
  • Staying for 182 days or more in the previous year
  • Staying for 90 days or more in the previous year (correct)

    • What does being 'ordinarily resident' mean in the context of income tax?

  • An individual who has never stayed in India
  • An individual who only lives in India for tax purposes
  • An individual who meets certain residency conditions under income tax laws (correct)
  • An individual who stays outside India for more than five years

    • Which test requires an individual to stay in India for a total of 365 days in the four years preceding the relevant year?

    <p>Test 2</p> Signup and view all the answers

    What law defines residential status for tax purposes in India?

    <p>Income Tax Act of 1961</p> Signup and view all the answers

    What is considered as deemed income under the Income Tax Act for the financial year 68?

    <p>Cash credit</p> Signup and view all the answers

    Which financial year corresponds to the deemed income 'No explain bullion cash, Jewellery'?

    <p>69A</p> Signup and view all the answers

    What is the term for the year in which income is actually earned or expenditure is incurred?

    <p>Financial Year</p> Signup and view all the answers

    Can a non-citizen be considered a resident in India for income tax purposes?

    <p>Yes, residency is independent of citizenship.</p> Signup and view all the answers

    What does the term 'Previous Year' refer to in the context of income tax?

    <p>The financial year preceding the assessment year.</p> Signup and view all the answers

    What happens if a non-resident ship owner has no representative in India and the ship leaves Indian ports with unpaid income from loaded goods?

    <p>The ship will not be allowed to leave until the tax is paid.</p> Signup and view all the answers

    In exceptional cases, how does the income from the previous year relate to the tax assessment in the current year?

    <p>It functions as the assessment year.</p> Signup and view all the answers

    What does the assessing officer determine regarding a non-resident ship owner leaving India?

    <p>Whether the individual is leaving temporarily or permanently.</p> Signup and view all the answers

    When will income earned by a non-resident ship owner be taxed if they are leaving India for good?

    <p>In the previous year.</p> Signup and view all the answers

    What do references like 'see-172' in income tax regulations indicate?

    <p>They indicate further details in broader tax regulations.</p> Signup and view all the answers

    What is the duration of the previous year in the context of income tax assessment?

    <p>From April to March</p> Signup and view all the answers

    For a newly set-up business, how is the previous year determined?

    <p>From the date of commencement to 31st March of the following year</p> Signup and view all the answers

    What does the previous year encompass for a continuing business?

    <p>The financial year preceding the assessment year</p> Signup and view all the answers

    If a new source of income is created, how is the previous year defined?

    <p>The period between the source's inception and 31st March of the next year</p> Signup and view all the answers

    Which of the following is a requirement for all assesses regarding the previous year?

    <p>To adhere to the financial year as the previous year for income tax purposes</p> Signup and view all the answers

    What happens if an AOP, BOP, or ATP is formed for a limited period?

    <p>The assessment will be done in the same year.</p> Signup and view all the answers

    How is a person's income assessed if they are likely to sell their assets?

    <p>Based on the income of the previous year.</p> Signup and view all the answers

    What should be anticipated when an individual transfers assets to avoid tax?

    <p>Assessment will be based on the income of the previous year.</p> Signup and view all the answers

    If a business is discontinued during the assessment year, when will the assessment occur?

    <p>In the same year including past income.</p> Signup and view all the answers

    In the context of avoiding tax, what might lead to an assessment if a person intends to sell assets?

    <p>Suspicions about their intention to avoid tax.</p> Signup and view all the answers

    Which condition must be fulfilled to consider an individual as a Non-Resident according to the Income Tax Act?

    <p>The individual must fulfill any one of the listed conditions.</p> Signup and view all the answers

    What does Sec-2(30) of the Income Tax Act 1961 pertain to?

    <p>The determination of non-resident status.</p> Signup and view all the answers

    What needs to be considered for determining non-resident status?

    <p>The relevant previous year's income and details.</p> Signup and view all the answers

    Which of the following is NOT a criterion for determining Non-Resident status?

    <p>Staying in India for more than 182 days.</p> Signup and view all the answers

    What is implied if an individual does NOT fulfill any conditions under Sec-6(2) of the Income Tax Act?

    <p>The individual is classified as a Non-Resident.</p> Signup and view all the answers

    Which of the following criteria qualifies an individual as a deemed resident in India?

    <p>Their total income must exceed ₹15,00,000 excluding foreign income.</p> Signup and view all the answers

    Which situation allows a crew member on an Indian ship to be considered a resident using a shorter stay period?

    <p>If they are an Indian citizen for 60 days during the year.</p> Signup and view all the answers

    What is one requirement for an individual to be classified as an ordinary resident in India?

    <p>They must fulfill all conditions outlined in Sec 6(1).</p> Signup and view all the answers

    What is the duration needed for an Indian citizen visiting India to establish residency?

    <p>They can establish residency in as little as 60 days.</p> Signup and view all the answers

    Which of the following statements about deemed residents is correct?

    <p>Deemed residents are only those who exceed ₹15,00,000 in income from Indian sources.</p> Signup and view all the answers

    Under which circumstances can a person be considered a resident but not ordinarily resident in India?

    <p>The person was a non-resident in India for 9 preceding years.</p> Signup and view all the answers

    What is the minimum duration one must reside in India to meet Test 2 for residency?

    <p>730 days during the 7 preceding years.</p> Signup and view all the answers

    Which of the following is NOT a requirement for Test 3 in determining residency?

    <p>The person has resided in India for at least 182 days.</p> Signup and view all the answers

    Which situation does NOT qualify as a person being resident but not ordinarily resident?

    <p>Non-resident in India for 8 preceding years.</p> Signup and view all the answers

    Which of the following is a requirement for being deemed a resident under Test 1?

    <p>Was resident in India for less than 2 preceding years.</p> Signup and view all the answers

    Study Notes

    Residential Status of an Individual

    • Residential status is determined under the Income-tax Act 1961.
    • It can be divided into two categories: resident and ordinarily resident.
    • To determine the status, two tests are used.

    Test 1

    • An individual who stayed in India for 182 days or more during the previous year, is treated as a resident.

    Test 2

    • An individual who stayed in India for a period of 60 days or more during the four years preceding the relevant assessment year, is treated as an ordinary resident.

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    Description

    Test your knowledge on the residency status and definitions related to income tax in India. This quiz covers key concepts like ordinary residency, deemed income, and the previous year as it pertains to tax laws. Perfect for students studying Indian taxation laws or professionals brushing up on their knowledge.

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