Yes, the residential status of a person earning income is very much relevant for determining the taxability of such income in his hands. Taxability of any income in the hands of a person depends on the following two things : (1) Residential status of the person as per the Income-tax Law; and (2) Nature of […]
Will a person holding Indian citizenship be treated as a resident in India for the purpose of charging Income-tax?
The Finance Act, 2020 has introduced new section 6(1A) to the Income-tax Act, 1961. The new provision provides that an Indian citizen shall be deemed to be resident in India only if his total income, other than income from foreign sources, exceeds Rs. 15 lakhs during the previous year. For this provision, income from foreign […]
What are the different classes of residential status prescribed under the Income-tax Law for a Hindu Undivided Family (HUF)?
For the purpose of Income-tax Law, a HUF can have any one of the following residential status: (1) Resident and ordinarily resident in India (2) Resident but not ordinarily resident in India (3) Non-resident Every year the residential status of the taxpayer is to be determined by applying the provisions of the Income-tax Law designed […]
How to determine the residential status of a company?
With effect from Assessment Year 2017-18, a company is said to be resident in India in any previous year, if: (i) it is an Indian company; or (ii) its place of effective management, at any time in that year, is in India. For this purpose, the “place of effective management” means a place where key […]
What is the objective of FEMA?
The main objective of FEMA is to facilitate external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. FEMA deals with provisions relating to procedures, formalities, dealings, etc. of foreign exchange transactions in India. The transactions relating to foreign exchange have been classified under FEMA into two […]