Mr. Akshay (aged 59 years), an Indian citizen, travelled frequently out of India for his business trip as well as for his outings. He left India…

Determination of residential status 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 for at least 60 days in the previous year and has been in India during the 4 years immediately preceding the relevant previous year for a total period of 365 days or more. If the 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. Mr. Akshay, an Indian citizen, has satisfied the first basic conditions for being a resident, since he was in India for 189 days (20+17+30+31+31+29+31) during the previous year 2023-24. Hence, he is a resident in India for A.Y.2024-25. An individual would be resident but not ordinarily resident if he satisfies either one of the following conditions: (i) He has been non-resident in India in any 9 out of 10 previous years preceding the relevant previous year, or (ii) He has, during the 7 years immediately preceding the relevant previous year, been in India for a period of 729 days or less. Since Mr. Akshay has been in India for less than 700 days during the 7 years immediately preceding the previous year, he would be a resident but not ordinarily resident for A.Y. 2024-25 Computation of total income of Mr. Akshay for A.Y.2024-25 Particulars Amount (₹) (1) Long-term capital gain on sale of shares of an Indian listed company is chargeable to tax in the hands of Mr. Akshay, since it has accrued and arisen in India even though the sale proceeds were credited to bank account in UK. 1,12,000 (2) Dividend received from an Indian company taxable in the hands of the Akshay as Income from other sources since the income has accrued or arisen in India 40,000 Less: Interest expenditure restricted to 20% of dividend 8,000 32,000 (3) Interest on post office saving bank account is taxable in the hands of Mr. Akshay as Income from other sources, since it has accrued and arisen in India and is also received in India. 9,500 Less: Exemption under section 10(15) 3,500 6,000 Gross Total Income 1,50,000 Less: Deduction under section 80TTA 6,000 Total Income 1,44,000