Ms. Rita, an Indian citizen and an MBA from Howard University, was employed in AFL LLP of Country A since June, 2016. She came to India on…

Determination of residential status of Ms. Rita for the A.Y. 2024-25 As per section 6(1), in order to be a resident of India in the P.Y.2023-24, Ms. Rita should satisfy either of the following two conditions - (1) Her stay in India should be for a period of 182 days or more in the P.Y.2023-24; or (2) Her stay in India should be for a period of 60 days or more in the P.Y.2023-24 and for a period of 365 days or more in the four immediately preceding previous years. Ms. Rita's stay in India in the P.Y.2023-24 is 138 days (i.e., 16 days + 31 days + 31 days + 29 days + 31 days). She left India in May, 2012 and never visited India thereafter. Her stay in India in the four immediately preceding previous years would be Nil. Therefore, she does not satisfy either condition (1) or condition (2) for being a resident. As per section 6(1A), an individual who is a citizen of India would be deemed to be a resident of India if his total income, other than income from foreign sources, exceed 15lakh during the relevant previous year and he is not liable to tax in any other country by reason of his domicile or residence or any other criteria of similar nature. Ms. Rita's total income, other than income from foreign sources, would be - 16,50,000 for A.Y.2024-25 as shown below Particulars ₹ Salary income from Autofit Ltd. [Computed] [Accrues or arises in India] 13,50,000 Dividend from shares of an Indian company [Accrues or arises in India] 3,00,000 16,50,000 Since Ms. Rita is a citizen of India who is not liable to pay income-tax in Country A and her total income, other than income from foreign sources, exceed 15lakhs, she would be deemed resident in India under section 6(1A) for A.Y.2024-25. A deemed resident is, by default, a resident but not ordinarily resident. In case of a resident but not ordinarily resident, income accrues or arises, deemed to accrue or arise and received or deemed to be received in India, is taxable. In addition, Income which accrues or arises outside India would also be taxable if it is derived from a business controlled in or a profession set up in India. Ms. Rita's total income for A.Y. 2024-25 Particulars ₹ Salary income from AFL LLP [Not taxable since it accrues or arises outside India] Salary income from Autofit Ltd. [Computed] 13,50,000 Interest income in Country A [Not taxable since it accrues or arises outside India] Dividend from shares of an Indian company 3,00,000 Total Income 16,50,000