Mr. Akash, an Indian citizen aged 45 years, worked in XYZ Ltd. in Delhi. He got a job offer from ABC Inc., California on 01.06.2022. He left India…

As per section 6(1), an Indian citizen or a person of Indian origin who, being outside India, comes on a visit to India would be resident in India if he or she stays in India for a period of 182 days or more during the relevant previous year in case such person has total income, other than the income from foreign sources, not exceeding 15lakhs. However, if such person has total income, other than the income from foreign sources, exceeding 15lakhs, he would also be a resident if he has been in India for at least 120 days during the relevant previous year and has been in India during the 4 years immediately preceding the previous year for a total period of 365 days or more. In such a case, he would be resident but not ordinarily resident in India. Income from foreign sources means income which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India) and which is not deemed to accrue or arise in India. In this case, total income, other than the income from foreign sources, of Mr. Akash for P.Y. 2023-24 would be Particulars Amount (₹) Salary from ABC Inc., California received in California (Computed) (Not included in total income, since it is income from foreign source) - Dividend from Indian companies (Included in total income, since it is deemed to accrue or arise in India) 5,00,000 Agricultural income from land situated in Nepal (Not included in total income, since it is accrued or arisen outside India and received outside India) - Rent received/receivable from house property in Delhi (Included in total income, since it is deemed to accrue or arise in India) 5,50,000 Less: 30% of 5.50 lakhs 1,65,000 Profits from a profession in California, which was set up in India, received there 6,00,000 Total income, other than the income from foreign sources 14,85,000 Since, Mr. Akash is an Indian citizen who comes on a visit to India only for 121 days in the P.Y. 2023-24 and his total income, other than income from foreign sources does not exceed 15lakhs, he would be non-resident for the A.Y. 2024-25. A non-resident is chargeable to tax in respect of income received or deemed to receive in India and income which accrues or arises or is deemed to accrue or arise to him in India. Accordingly, his total income would be as follow – Particulars Amount (₹) Salary from ABC Inc., California received in California (Computed) (Not taxable, since it neither accrues or arises in India nor is it received in India) - Dividend from Indian companies (Taxable, since deemed to accrue or arise in India) 5,00,000 Agricultural income from land situated in Nepal (Not taxable, since it neither accrues or arises in India nor is it received in India) - Rent received/receivable from house property in Delhi (Taxable, since it is deemed to accrue or arise in India) 5,50,000 Less: 30% of 5.50 lakhs 1,65,000 Profits from a profession in California, which was set up in India, received there - Gross Total Income/ Total income 8,85,000