CMA VIPUL SHAH PRACTICAL QUESTIONS RESIDENTIAL STATUS

CHAPTER 2 – RESIDENTIAL STATUS

Q.1
X was born in Karachi on January 2, 1947. He has been Staying in USA since 1986. He comes to India on a
visit 0f 200 days on December 10, 2023. Determine the residential status of X for the assessment year
2024-25.

Q.2
X (4o years), an Indian citizen, leaves India for the first time on October 10, 2021 for employment outside
India. Before October 10, 2021, he was never out of India since his birth. During the previous years 2022-
23 and 2023-24 he comes to India for 152 days (on April 2, 2022) and 195 days (on July 10, 2023),
respectively. Find out the residential status of X for the assessment year 2024-25. Does it make any
difference if X comes to India on October 10, 2023 (and not on July 10, 2023)?

Q.3
X in a businessman. His parents and grandparents were born in Canada. He was born in USA but later on
he migrated to Karachi and took Indian citizenship on June 1, 1946. After division of India, he stayed in
Pakistan and took Pakistan citizenship in December 1948. From the information given below, find out the
residential status of X for the assessment year 2024-25.
Previous Year Presence in India Previous Year Presence in India
2024-25 20 days 2018-19 46 days
2023-24 70 days 2017-18 182 days
2022-23 60 days 2016-17 55 days
2021-22 40 days 2015-16 59 days
2021-21 5 days 2014-15 25 days
2019-20 260 days 2013-14 24 days

Q.4
X was Indian citizen up to March 31, 2018. With effect from April 1, 2018, he migrated to Kenya and took
the citizenship of that country. He was born in Delhi in 1980. His parents were born in Kolkata during 1950.
However, grandparents of X were born in South Africa. From the information given below, find out the
residential status of X for the assessment year 2024-25.
Previous Year Presence in India Year Presence in India
2024-25 14 days 2018-19 38 days
2023-24 60 days 2017-18 180 days
2022-23 181 days 2016-17 181 days
2021-22 180 days 2015-16 175 days
2020-21 58 days 2014-15 181 days
2019-20 60 days 2013-14 44 days
Note- he left India for the first time in 1997 to set up a business outside India and since then he comes to
India every year as shown in the table above.

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CMA VIPUL SHAH PRACTICAL QUESTIONS RESIDENTIAL STATUS
Q.5
X is an Indian citizen. Currently, he is in employment with a multinational company and posted in Nigeria.
During the previous year 2022-23, he comes to India for a visit of 122 days. In earlier 4 years, he in in India
for more than 1000 days. X wants to know his residential status for the assessment year 2023-24. His
annual income for the previous year 2022-23 is as follows-
Rs.
Income from salary, rent, consultancy and interest earned and received in Nigeria 28,00,000
Income from business (accrued and received outside India, controlled from Nigeria) 22,00,000
Income from another business (accrued and received outside India, controlled from India) 7,00,000
Interest on bank fixed deposit in India 12,00,000
Any other income in India or Outside India Nil
Life insurance premium paid in India 90,000

Q.6
X Inc. is a foreign company. However, persons holding more than 90 per cent shares in the company are
citizen of India as well as resident in India. The business of the company is controlled partly from outside
India by a team of professional. Find out the residential status of X Inc. and net income for the assessment
year 2023-24 on the basis of following additional information-
Rs.
Income from a property situated in Canada (rent is received outside India) 20,40,000
Income from a property situated in Mumbai (rent is received outside India) 23,10,000
Royalty from the Government of India (paid outside India) 6,00,000
Technical fees received from a Canadian company (paid outside India but it is utilised by 18,00,000
the Canadian company for carrying on a business in India)
Income from business in India 8,00,000

Q.7
Discuss whether the following incomes are taxable for the assessment year 2023-24 in the hands of X who
was in India during the previous year 2022-23 only for 45 days –
a. Interest paid to X by the Government of India.
b. Interest paid to X by Y, a resident in India (borrowed money is utilised by Y for the purpose of earning
capital profit outside India).
c. Royalty paid by the Government by use of a patent developed by X.
d. Royalty paid to X by Z, a non-resident Indian (it is paid by Z for using a computer software, developed
by X, for the purpose of carrying on a business by Z in India).
Salary paid to X by B Inc., an American company, for rendering service in America.