Section 6(2) of the Act provided that a Hindu Undivided Family shall be resident in India in a previous year in all cases except when control and management of its affairs is wholly situated outside India. In other words, if even a small part of control or management is situated in India it will be a resident Hindu Undivided Family.
Non-Resident. If the control and management of the affairs of a Hindu Undivided Family is situated wholly outside India it is non-resident Hindu Undivided Family.
Not Ordinary Resident. A Hindu Undivided Family can claim the status of ‘Not Ordinarily Resident’ if the ‘Karta’ (Manager) of H.U.F. can prove that
(a) He was not a resident of India for 9 out of 10 previous years preceding the relevant previous year, or
(b) He was not in India for a period totalling 730 days or more during 7 previous years preceding the relevant previous year.