The income liable to tax in the hands of the assesseeis determined on the basis of residential status. For this purpose the assesees are divided in to the following two categories:
i. Resident in India and
ii Non-resident in India
Individuals and Hindu undivided families who are resident in India are again classified as
(a) Ordinary resident
(b) Not ordinarily resident
now, pl. read section 6 of the Incometax Act to understand about the residential status.
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