RESIDENTIAL STATUS. Tere are two types of taxpayers -esident in Indialandnon-resident in India] Indian income ig Relevance of taxable in India whether the person earning income is resident or non-resident. Conversely, residential foreign income of a person is taxable in India only if such person is resident in India. Foreign status income of a non-resident is not taxable in India. For different taxpayers residential status is as follows— = Individuals /Hindu undivided family— Ordinarily resident Resident in India [Not-ordinarily resident Non-resident in India "Others © Resident in India 2 Non-resident in Indiacht Significance of residential Residential status of an individual {LAW OF INCOMB-TAX IN BRIEF 1 foreign incomels net charecable fan income i taxable Bo or meen exit tee) Inde Th the case of non-resident, Indian income i taxable Inthe case of resident but ot ordinarily resident. Ind is taxable only in two cases tthe cave of resident (oF res Income as well as foreign income are chargeable to 188 sessment ea" “The able given below summarize the rue of residence (0 the Wom ese “Resident and ordinarily, “Resident brat ot ordinarily ri b ‘Ms satiny at est one ofthe | Must sty a oe” Seem atoaetoe wr engatenan | SS aaa | Wrihe care ofan ee Individual fore thar a ie, | cheesy a ; mere | cpt? - or as @ “dia ding the + Indian ship) ee E a 2 a Terai [ (Bebe rc ae ir a sc irs eee ae uae seem Ie cea eta rk tnt eae 1 represents en cic iden oe In cao! be dere cera o aren nda nen he Iceni da ncn ns ed a ron cpa sie sonion ven above Ceca No 4/201, dated‘ INCOME THAT IS EXEMPT FROM TAX fs tncome from salary if service is rendered in India income from salary (not be vice 1 rendered outside tnd ded the employer is Gow joyce isa cizen of India. «Dividend paid by the Indian company 1 tnterest, royalty of technical fees received from the Government of fia, 1 fmerest royalty or technical fees received from a resident (except when the payment pertains business carried on by the payer outside India) fs Interest, royalty oF technical ved from a non-resident if the payment pertains to business carried on by the payer in India, fs income arising outside India [b BRorafter July 5, 2019, by person resident ing any sum of money referred 1 in section 2(24( xvi India to a non-resident /foreign company INCOME THAT IS EXEMPT FROM TAX, nthe following cases, income is exempt from tax, as it does not form part of total income. The iden of proving that a particular item of income falls within this section ison the assesses. sagrcature income 1007 { Payments received from family income by a member of a HUF 1002) te Share of profit from a firm 10(24) ‘aterest received by a non-resident from prescribed securities 1004) ‘interest received by a person whois resident outside India on amounts credited the Non-resident (External) Account” 1048) f Interest payable to a non-resident/foreign company by an Indian company’ ‘asiness trust pertaining to money borrowed from a source outside India by way SFist of rupee denominated bond [as referred ton section 1941.C(2\ca) during September 17, 2018 and March 31, 2019 10440 ‘soy income accrued or arisen to, or received by, a specified fund asa result of Tatler of capital asset [referred to in section 47(viiad)) on a recognised stock [ithsnge located in any International Financial Services Centre (and where the Gnsideration for such transaction is paid or payable in convertible foreign ‘Mahange) tothe extent such income accrued or arisen to, oris received in respect Gfunits held by a non-resident or is attributable to the investment division of offshore banking unit 1440) ‘Any income accrued or arisen to (or received by) a non-resident as a result of framfer ofnon deliverable forward contracts [or (with effect from the assessment Sear 2023-24) offshore derivative instruments or over-the-counter derivatives) tatered into with an offshore banking unit of an International Financial Services| Centre, which fulfils prescribed conditions 1048) ‘sAnyincome of anon-resident by way of royalty, on account of lease of an aircraft {orlwith effect from the assessment yeat 2023-24) ship}ina previous year, paid by 4 unit of an International Financial Services Centre, if the unit is eligible for deduction under section 8OLA for that previous year; and has commenced its ‘operations on or before March 31, 2024 10445) * Any income received by a non-resident from portfolio of securities/financial Products/funds, managed or administered by any portfolio manager on behalf of ‘hchnon-resident, in an account maintained with an Offshore Banking Unitinany International Financial Services Centre to the extent such income accrues or atses outside India and is not deemed to accrue or arse in India (applicable from the assessment year 2023-24) 10(46) * Leave travel concession provided by an employer tohis Indian citizen employee 109) '© Remuneration received by foreign diplomats ofall categories 146) "Salary received by a foreign citzen ax an employee of frcign enterprise ‘rovided his stay in india doesnot exceed 90 days pee | 10.0K09 cht Income that is exempt from tax