Mrs. Smita, an Indian citizen, is in employment with an overseas company located in UAE. She is not liable to tax in UAE. During the P.Y. 2024-25,…

Mrs. Smita is an Indian citizen and in employment in UAE. She comes on a visit to India during the P.Y.2024-25 for 121 days. Her stay in India in the four immediately preceding previous years i.e., in P.Y. 2020-21 to P.Y. 2023-24 is 371 days (50 + 100 +76 + 145 days). Her total income, other than the income from foreign sources, during the P.Y. 2024-25 would be - Particulars Amount (₹) Salary accrued or arisen in UAE (income from a foreign source, hence, to be excluded) Nil Income accrued and arisen in India 2,00,000 Income deemed to be accrued and arisen in India 7,00,000 Income arising in UAE, from a business set up in India (to be included since the business is controlled from India, even though such income accrues and is received outside India) 5,00,000 14,00,000 Less: Deduction u/s 80C (Not available under default tax regime) - Total income (excluding income from foreign sources) 14,00,000 Mrs. Smita, an Indian citizen, having total income other than income from foreign sources not exceeding 15lakhs and visiting India during the P.Y 2024-25, would be a resident in India for the A.Y.2025-26, if she has stayed in India for 182 days or more during the P.Y. 2024-25. Since she has stayed only for 121 days in India during the P.Y. 2024-25, she is a non a resident for the A.Y. 2025-26 as per section 6(1). She is not a deemed resident in India under section 6(1A) for A.Y. 2025-26 though she is not liable to tax in UAE, since her total income other than income from foreign sources does not exceeds 15lakhs. Her total income during the P.Y. 2024-25 would be – Particulars Amount (₹) Salary accrued or arisen in UAE (income from a foreign source, hence, to be excluded) Nil Income accrued and arisen in India 2,00,000 Income deemed to be accrued and arisen in India 7,00,000 Income arising in UAE, from a business set up in India (not taxable) Nil Gross Total Income 9,00,000 Less: Deduction u/s 80C (Not available under default tax regime) Nil Total income 9,00,000