The control and management of the business done by Siddharth-HUF is located in London and all policy decisions are being taken therefrom. Mr. Siddharth, the karta of the HUF, born in Jaipur, visited India during the prev

CS Professional · Advanced Tax Laws and Practice · PYQS · June 2019
The control and management of the business done by Siddharth-HUF is located in London and all policy decisions are being taken therefrom. Mr. Siddharth, the karta of the HUF, born in Jaipur, visited India during the previous year 2018-19 after a gap of 15 years. He came to India on 1st April, 2018 and left for London via Dubai on 30th Nov., 2018. Determine the residential status of Mr. Siddharth and Siddharth-HUF for the A.Y. 2019-20.

Answer & Explanation:

Determination of Residential Status of Mr. Siddharth u/s 6(1) & 6(6) of the Income Tax Act, 1961. During the previous year 2018-19, Mr. Siddharth, the karta of HUF, has stayed in India in total for (30+31+30+31+31+30+31+30) 244 days and will be treated as resident in India for the previous year 2018-19. However, since he has come to India only after a period of 15 years, he does not satisfy any of the conditions for being ordinarily resident. Therefore, the residential status of Mr. Siddharth, the karta of HUF, for the previous year 2018-19 relevant to assessment year 2019-20 shall be "Resident but not Ordinarily Resident". The control & management of affairs of Siddharth HUF is situated wholly outside India (i.e in London) during PY 2018-19. Therefore, the status of the Siddharth-HUF for the previous year 2018-19 relevant to assessment year 2019-20 shall be a Non-Resident.

Topics: Income Tax Act, 1961

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