Introduction

Returns from property computation

Income Tax Assessee classification

Residential status

Income from salary

Exemptions available on salary

Income from house property

Tax exemption

Income and taxation

Long term/Short term capital gains

Income from other sources

Capital gains

  
Residential status of an individual...
 
On the basis of the period of residence in India as laid down in the provisions of Section 6 of the Income Tax Act, the residential status of an individual is classified into:
  

• Resident
• Resident but not ordinarily resident; and
• Non-resident

It is on the basis of the residential status of an individual that the scope of his total income is determined for each assessment year. A resident tax payer is charged income tax on his global income; he has to pay tax irrespective of whether the income has accrued in India or abroad. In the case of a non-resident, tax has to be paid only on the income received, accruing or arising in India.