Sarad is a Karta of HUF doing business at Delhi. Sarad is residing in USA for past 6 years and he visited India for 30 days every year for filing income tax return of HUF. His 3 sons and wife take care of the affairs of

Official answer key: (A), (B). Official source note: As per section 6(2) of the Income tax Act, 1961, HUF is said to be resident in India if the control and management of its affairs is situated wholly or partly in India. The question mentioned only the affairs of the business (which can be considered as day-to-day affairs) and is salient about the defacto control and management. Therefore, if it is assumed that the control and management is wholly or partly in India, then HUF is RNOR (option A). If control and management is wholly outside India, then HUF is NR (option B).