Tax Monk

1. Meaning  Determination of the "Residential Status" of an assessee is one of the key concepts under the Income Tax Act, 1962 since the taxability of an assessee be it an individual, a firm, a company, etc. is determined based on its residential status during any given assessment year. It is pertinent to note that the term "Residential Status" has been defined under the tax laws with the purpose of determining tax paying liability of an assessee within the Indian Jurisdiction and it has nothing to do with the status of citizenship or nationality of an individual. It may so happen that an Indian citizen may be a "Non Resident" for the purpose of taxation in India or a citizen of a Foreign country may be a "Resident" liable to pay tax in India. 2. Classification of the Residential Status of the Assessee Based on the provisions for Determination of Residential Status of the Assessee (discussed in the para below), assesses are c...