According to section 5 of the Act, for both residents and non-residents, income derived from Indian sources is always taxable in India.
Foreign income is taxable in India only when the recipient is a resident in India. Thus, the scope of Income tax depends on the residence status of the assessee.
The test for determining the residence status for different taxable persons (such as an individual, company, firm etc.) are specified in section 6 of the Act.
Taxpayers can be either:
- Ìý
•ÌýÌýÌýÌý resident in India, or
- Ìý
•ÌýÌýÌýÌý non-resident in India
Further, an individual resident in India can be either:
- Ìý
•ÌýÌýÌýÌý resident and ordinarily resident, or
- Ìý
•ÌýÌýÌýÌý resident but not-ordinarily resident
IN1.2.1ÌýÌýÌýÌý Determining residence status for an individual who is NOT an Indian citizen or a person of Indian origin
The period of residence in India of an Income-tax assessee is determined on the basis of the number of days the assessee is residing in
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Web page updated on 17 Mar 2025 14:25