Mrs. Sia D'Souza is an American, got married to Mr. Kabir of India in New York on 14.02.2023 and came to India for the first time on 18.03.2023. She…

Under section 6(1), an individual is said to be resident in India in any previous year, if he satisfies any one of the following conditions: (i) He has been in India during the previous year for a total period of 182 days or more, or (ii) He has been in India during the 4 years immediately preceding the previous year for a total period of 365 days or more and has been in India for at least 60 days in the previous year. If an individual satisfies any one of the conditions mentioned above, he is a resident. If both the above conditions are not satisfied, the individual is a non-resident. Therefore, the residential status of Mrs. Sia D'Souza, an American, for A.Y.2024-25 has to be determined on the basis of her stay in India during the previous year relevant to A.Y. 2024-25 i.e. P.Y.2023-24 and in the preceding four assessment years. Her stay in India during the previous year 2023-24 and in the preceding four years are as under: P.Y. 2023-24 01.04.2023 to 16.08.2023 138 days 23.03.2024 to 31.03.2024 9 days Total 147 days Four preceding previous years P.Y.2022-23 [1.4.2022 to 31.3.2023] 14 days P.Y.2021-22 [1.4.2021 to 31.3.2022] Nil P.Y.2020-21 [1.4.2020 to 31.3.2021] Nil P.Y.2019-20 [1.4.2019 to 31.3.2020] Nil Total 14 days The total stay of Mrs. Sia D'Souza during the previous year in India was less than 182 days and during the four years preceding this year was for 14 days. Therefore, due to non-fulfillment of any of the two conditions for a resident, she would be treated as non-resident for the Assessment Year 2024-25. Computation of total income of Mrs. Sia D'Souza for the A.Y. 2024-25 Particulars Particulars ₹ Income from house property Flat located in Mumbai let-out from 01.06.2023 to 31.03.2024 @26,000 p.m. Gross Annual Value [26,000 x 10] 1 2,60,000 Less: Municipal taxes Nil Net Annual Value (NAV) 2,60,000 Less: Deduction under section 24 30% of NAV 78,000 Interest on loan [fully allowable as deduction, since property is let-out] 2,05,000 2,83,000 Income from other sources Gold chain worth - 1,50,000 received from parents of husband would be exempt, since parents of husband fall within the definition of relatives and gifts from a relative are not chargeable to tax. Nil Gift received from friends of her husband aggregating to 1,65,000 is taxable under section 56(2) (x) since the amount of cash gifts of 1,65,000 exceeds - 50,000. 1,65,000 Gross Total income/ Total Income 1,42,000 1 Actual rent received has been taken as the gross annual the value in absence of other information (i.e. Municipal value, fair rental value and standard rent) in the question.