BASIS OF CHARGE

CONTENT
 Residential status of Assessee
 Scope of total income
RESIDENTIAL STATUS
EXAMPLE 1
 Mr. A left India for the 1st time on 3rd January
2017 and did not return till 31st March 2017.
Determine his Residential status in previous year
2016-2017?
SOLUTION
 Mr. A’s stay in India during the previous year
2016-2017 :- (From 1st April 2015 to 3rd January
2017) = (30+31+30+31+31+30+31+30+31+3) =
278 days.
 Since Mr. A has satisfied the 1st basic condition
of stay of 182 days or more in India during the
previous year 2016-2017, he shall be considered
as a Resident for the previous year 2016-
2017.
 Note- It shall be presumed that Mr. A has stayed
in India on 3rd January (Date of leaving India)
EXAMPLE 2:-
 Mr. B, a foreign national left India on 13th May
2016 and returned on 26th October, 2016 and
stayed in India till 31st March 2017. Determine
his Residential status in previous year 2016-
2017?
SOLUTION
Mr. B’s stay in India during the previous year 2016-
2017 : - (From 1st April 2016 to 13th May 2016 &
from 26th October, 2016 to 31st March, 2017)
=(30+13+6+30+31+31+28+31) = 200 days.
Since Mr. B has satisfied the 1st basic condition of stay
of 182 days or more in India during the previous year
2016-2017, he shall be considered as a Resident for
the previous year 2016-2017.
Note 1- It shall be presumed that Mr. B has stayed in
India both on 13th May (date of leaving India) & 26th
October (Date of arrival on India)
Note 2:- The fact that Mr. B is a foreign national is
irrelevant.
EXAMPLE 3
Mr. C left India on 27th July 2016 and didn’t
return to India thereafter.
His stay in India during the last four years is as
follows:-
2012-13= 92 days
2013-14= 125 days
2014-15= 130 days
2015-16= 105 days

Determine his Residential status in previous year

2016-2017?
SOLUTION
 Mr. C’s stay in India during the PY 2015-16: -
(From 1st April 2015 to 27th July 2015) =
30+31+30+27 = 128 days.
 Mr. C’s Stay in India during the PY 2012-13 to
PY 2015-16= 105+92+125+130= 452 days.

Since Mr. C has satisfied the 2nd basic condition of

stay of 60 days or more in India during the
previous year 2016-17 and stay of 365 days or
more in India during the four previous years
immediately preceding the previous year 2016-17
, he shall be considered as a Resident for the
previous year 2016-17 .
EXAMPLE 4
 Mr. D left India for the 1st time on 15th July
2016 and didn’t return thereafter. Determine his
Residential status in previous year 2016-2017?
SOLUTION
 Mr. D’s stay in India during the PY 2016-2017 : -
(From 1st April 2016 to 15th July 2016) =
(30+31+30+15) = 106 days. Since Mr. D has left
India for the 1st time in previous year 2016-2017,
he has throughout the four previous years
immediately preceding the previous year 2016-
2017, stayed in India.
 Since Mr. D has satisfied the 2nd basic condition
of stay of 60 days or more in India during the
previous year 2016-2017 and stay of 365 days or
more in India during the four previous years
immediately preceding the previous year 2016-
2017, he shall be considered as a Resident for
the previous year 2016-2017.
RESIDENT AND ORDINARILY RESIDENT
PROBLEM 1
Mr. A stays in India during the previous year 2016-
17 for a period of 290 days. Following is the
detail of his stay in India during the last 10
years:-
Previous year No. of days PreviousPre No. of days
in India vious year in
India

2015-16 56 2009-10 134

2014-15 50 2008-09 195
2013-14 190 2007-08 300
2012-13 59 2006-07 50
2011-12 210
2010-11 123
EXAMPLE 2
Following is the detail of Mr. B’s stay in India. Determine his
Residential status for the PY 2016-17 and 2015-16. Would it have
made any difference had Mr. A been an Indian Citizen coming to
India for a visit during these Previous years.

Previous year No. of days PreviousPre No. of days

in India vious year in
India

2015-16 120 2009-10 123

2014-15 89 2008-09 184
2013-14 78 2007-08 195
2012-13 79 2006-07 190
2011-12 95 2005-06 185
2010-11 125 2004-05 196
EXAMPLE 3
Mr. Y, an person of Indian origin doing business
abroad came to India with an Intention to stay in
India permanently on 8th December, 2016 and
stayed in India thereafter. Following is the detail
of his stay in India during last 10 years.
Determine his residential status for the previous
year 2016-17. Will it make any difference if Mr. Y
is coming to India for a visit and not permanent
stay?
Previous year No. of days PreviousPrevi No. of days
in India ous year in
India

 Previous year in India

2015-16 125 2009-10 50

2014-15 59 2008-09 25

2013-14 58 2007-08 36

2012-13 189 2006-07 59

2011-12 59

2010-11 185
EXAMPLE 2
Following are the Income details of Mr. Z for the
previous year2016-17-
Calculate his taxable Income assuming that he is:-
a) Resident and Ordinarily Resident
b) Resident but not Ordinarily Resident
c) Non- Resident
EXAMPLE 3
Following are the Income details of Mr. A for the
previous year2016-17-
Calculate his taxable Income assuming that he is:-
a) Resident and Ordinarily Resident
b) Resident but not Ordinarily Resident
c) Non- Resident
EXAMPLE 4
Following are the Income details of Mr. A for the
previous year2016-17-
Calculate his taxable Income assuming that he is:-
a) Resident and Ordinarily Resident
b) Resident but not Ordinarily Resident
c) Non- Resident
SOLUTION