Basic rules for determining Residential Status of an Assessee
The following basic rules must be kept in mind while determining the residential status:
— Residential status is determined for each category of persons separately e.g. there are separate set of rules for determining the residential status of an individual and separate rules for companies, etc.
— Residential status is always determined for the previous year because we have to determine the total income of the previous year only.
— Residential status of a person is to be determined for every previous year because it may change from year to year. For example A, who is resident of India in the previous year 2017- 18, may become a non-resident in previous year 2018-19.
— If a person is resident in India in a previous year relevant to an assessment year in respect of any source of income, he shall be deemed to be resident in India in the previous year relevant to the assessment year in respect of each of his other source of income. [Section 6(5)]
— A person may be a resident of more than one country for any previous year. If Y is a resident in India for previous year 2017-18, it does not mean that he cannot be a resident of any other country for that previous year.
— Citizenship of a country and residential status of that country are separate concepts. A person may be an Indian national/citizen, but may not be a resident in India. On the other hand, a person may be a foreign national/citizen, but may be a resident in India.
— It is the duty of the assessee to place all material facts before the assessing officer to enable him to determine his correct residential status.