Tax liability???????

A was in INDIA fom 3rd OCT. to 31st Mach,

i.e he is in india for 29+30+31+31+28+31 = 180 DAYS which is less than 182 days.

Therefore it is deemed that he is non resident for the P.Y 2010-2011.

so, the income earned in INDIA is only taxable in INDIA (mumbai) i.e Rs 1,80,000/-

(3,00,000/- is exempt in INDIA for mr. A)

Originally posted by : Dheeraj
	A was in INDIA fom 3rd OCT. to 31st Mach, i.e he is in india for 29+30+31+31+28+31 = 180 DAYS which is less than 182 days. Therefore it is deemed that he is non resident for the P.Y 2010-2011. so, the income earned in INDIA is only taxable in INDIA (mumbai) i.e Rs 1,80,000/-   (3,00,000/- is exempt in INDIA for mr. A)

AGRRED.

BUT DEAR ALL SIR

UNDER SECTION 6(1) AN INDIVIDUAL IS SAID TO BE RESIDENT IN INDIA IN ANY PREVIOUS YEAR,

IF HE SATISFIES AT LEAST ONE OF THE FOLLOWING BASIC CONDITIONS:-

1) HE IS IN INDIA IN THE PREVIOUS YEAR FOR A PERIOD OF 182 DAYS OR MORE

2) HE IS IN INDIA FOR A PERIOD OF 60 DAYS OR MORE DURING THE PREVIOUS YEAR AND 365 DAYS OR MORE DURING 4 YEARS IMMEDIATELY PRECEDING THE PREVIOUS YEAR.

I THINK MR A SATISFIES THE 2ND CONDITION

no basic condition is satisfying here. he is taking employment outside india so 2nd contion is not applicable,only 1st condition is applicable,. so he is a non resident

so only 180000/- shall be taxable for him in india.

if i m wrong, pls make me right

YES Rakesh, Tushar & Dheeraj you all are right

THE AFORESIDE RULE OF RESIDENCE IS SUBJECT TO THE FOLLOWING EXCEPTIONS:

The period of "60 Days" referred to in (2) above has been extended to "182 days" for the following

"An Indian citizen who leaves India during the previous year for the purpose of employment outside India or an Indian citizen who leaves India during the previous year as a member of the crew of an indian ship"

Thank you

But say for the same case if

Mr A stays for only 90 days in London & earns Rs. 3,00,000/- and pays tax there on Rs.42408/-.

&

so Mr A stays for the rest 275 days in India and earns 180000/- and pays taxes of Rs.2000/- 

what would be his tax liabilty than. for A.Y.2011-12

Please reply with tax working.

thank you.

if Mr A stay in India during FY 2010-11 for 275 day then he shall be resident & ordinary resident of india. 

so income earned in india shall be taxable i e Rs 180000/-

For FY 2010-11, Rs.180000 will be taxed in india as his status is non-resident , but income earned and received in india.

Hi All,

To determine the Residential status one has to take into consider physical days present in india.

In the given case as Mr. John rightly said he satisfies the 2nd condition and he is a ROR.

Further, in this case Section 90 of IT act 1961 applies. As Assesee is ROR and his global Income is taxable he has to pay tax on Indian Income as well as London income and one can take tax credit of taxes paid in London as per the Tax treaty applicable.