Section I: Income Tax and You

• Ques: Many incomes are taxable even if you are working/residing outside India
• Ans: You can determine your residential status based on following conditions:
  • (1) Present in India for 182 days or more during 2008-09
  • (2) Present in India for 60 days or more during 2008-09 and 365 days or more during 4 years immediately before 2008-09
  • (3) Status is Resident for 2 years out of last 10 years
  • (4) Present in India for a period of 730 days or more during 7 years immediately before 2008-09
  • Based on the above conditions, you can be categorized into one of the following three resident categories:
    • Resident (and ordinarily resident): If you satisfy at least one of (1) or (2) and both of (3) and (4)
    • Resident (and not ordinarily resident): If you satisfy at least one of (1) or (2) and one or none of (3) and (4)
    • Non Resident: If you satisfy none of (1) or (2)
  • If you are ordinarily resident, then you must declare your income received in India as well as outside India.
  • If you are not ordinarily resident, then only the income received or accrued in India is liable to income tax.