Harish, a citizen of India and the Karta of an HUF is employed in M/s PWD Pvt. Ltd. He is drawing monthly salary of ₹ 40,000 in India. On August 31st, 2024 he was transferred to the branch office of M/s PWD Pvt. Ltd. in

CS Executive · Tax Laws and Practice · PYQS · December 2025
Harish, a citizen of India and the Karta of an HUF is employed in M/s PWD Pvt. Ltd. He is drawing monthly salary of ₹ 40,000 in India. On August 31st, 2024 he was transferred to the branch office of M/s PWD Pvt. Ltd. in U.S.A. and he left India on September 1st, 2024. The overseas branch paid him a salary of $ 2,000 per month in USA. He managed business of HUF from USA when he was not in India. He had also gone out of India for 99 days and 201 days in previous years 2023-24 and 2022-23, respectively. He had never gone out of India prior to that. He visited India from January 1, 2025 to January 15, 2025 for training on a project and received 15 days salary in India as per his Indian monthly salary before being transferred. Determine the residential status of Harish and his HUF for the Assessment Year 2025-26.

Answer & Explanation:

Residential Status of Harish: Harish, an Indian citizen who left India on 1st September 2024 for the purpose of employment to USA, would be non-resident in India, since he stayed in India for 169 days (30+31+30+31+31+1+15) only during the P.Y. 2024-25 which is less than 182 days. Residential Status of HUF: Since Harish is managing the HUF for part of the year from India, control and management of its affairs is situated partly in India. Hence, the HUF would be resident in India for the P.Y. 2024-25. Further, a HUF is said to be "Resident and ordinarily resident" in India during the previous year 2024-25, if Karta (Harish, in this case) satisfies both the following conditions: He is a resident in at least 2 out of 10 previous years preceding the relevant previous year; and His stay in India in the last 7 years preceding the relevant previous year is 730 days or more. Since, Harish has satisfied both the above conditions as he had never gone out of India except for 99 days and 201 days in the P.Y. 2023-24 and P.Y. 2022-23, respectively, the HUF would be ROR in India.

Topics: Income Tax

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