residential status

[Nitesh04]

can any on e tech me, what is the residential status & tax liability create in this situation.A person who is a director of a company and is also holding 100% share thereof. If he goes abroad for the purpose of his own business. What will be his status for the purpose of income tax when he leaves india. Whether he will be treated as gone for the purpose of employment outside India under (6) of the Income tax Act

[advsuhail]

Your question is incomplete Pl. furnish, How many days he remain out side India.

[ashutosh majumdar]

S. 6 defines "Residence in India" as follows:

"For the purposes of this Act,—

(1)  An individual is said to be resident in India in any previous year, if he—

(a)  is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more ; or

(b)  [* * *]

(c)  having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year.

Explanation.—In the case of an individual,—

(a)  being a citizen of India, who leaves India in any previous year as a member of the crew of an Indian ship as defined in clause (18) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958), or for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words "sixty days", occurring therein, the words "one hundred and eighty-two days" had been substituted ;

(b)  being a citizen of India, or a person of Indian origin within the meaning of Explanation to clause (e) of section 115C, who, being outside India, comes on a visit to India in any previous year, the provisions of sub-clause (c) shall apply in relation to that year as if for the words "sixty days", occurring therein, the words "one hundred and eighty-two days" had been substituted."

So, check whether your client is in India for 182 days or not. If not, check whether he is in India for at least 60 days and in the 4 preceding years been in India for at least 365 days.

If you have the dates, post it here and someone will help you out.