Residential Status section 6(5)

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Vedant Khanna

374 Points Joined March 2018

How can a person be a Resident for a source of income and non resident for another source of income?

I thought that Residential Status is only of the assessee...but section 6(5) of the Income Tax act has confused me.

This section provides that

"If a person is resident in India in a previous year relevant to an assessment year in respect of any source of income, he shall be deemed to be resident in India in the previous year relevant to the assessment year in respect of each of his other sources of income."

Please explain.

Replies (2)

MOHAMMED IMRAN

1020 Points Joined December 2017

take an example
A Ltd is a foreign company and providing two types of service X and service Y . and place of effective management is holly situated out side India upto 31st Jan, 2018 .From 1st Feb, 2018. A ltd transfer its POEM to India
it provides service Y upto 31st Dec.,2017 in India there after discontinued
from 15th February, 2018 service X is provided continuously in India
here in case of service Y the CO. is non -resident but ,
for service X the CO. is resident ,So he will be deemed to be resident in India for service y also