What is the residential status of an individual who has stayed in India for 120 days during the current financial year and 365 days in the preceding four years?
Practice Questions
1 question
Q1
What is the residential status of an individual who has stayed in India for 120 days during the current financial year and 365 days in the preceding four years?
Resident and Ordinarily Resident
Non-Resident
Resident but Not Ordinarily Resident
Not Applicable
The individual is classified as Resident and Ordinarily Resident based on the given criteria.
Questions & Step-by-step Solutions
1 item
Q
Q: What is the residential status of an individual who has stayed in India for 120 days during the current financial year and 365 days in the preceding four years?
Solution: The individual is classified as Resident and Ordinarily Resident based on the given criteria.
Steps: 6
Step 1: Understand the criteria for residential status in India. An individual is considered a resident if they meet either of the following conditions: they have stayed in India for 182 days or more during the current financial year, or they have stayed for 60 days in the current financial year and 365 days in the preceding four years.
Step 2: Check the individual's stay in the current financial year. The individual has stayed for 120 days, which is less than 182 days.
Step 3: Check the individual's stay in the preceding four years. The individual has stayed for 365 days in total, which meets the requirement of 365 days in the preceding four years.
Step 4: Since the individual does not meet the first condition (182 days in the current year) but meets the second condition (60 days in the current year and 365 days in the preceding four years), they are classified as a Resident.
Step 5: Determine if the individual is an Ordinarily Resident. To be classified as Ordinarily Resident, the individual must have been a resident in India in at least 2 out of the 10 preceding years and must have stayed for 730 days or more during the preceding 7 years. Since the individual has stayed for 365 days in the last four years, we need to check if they meet the other criteria.
Step 6: If the individual has been a resident in at least 2 out of the last 10 years, they are classified as Resident and Ordinarily Resident.
