On 22.09.2024, Mr. Prabhjot, aged 55 years, an Indian citizen left India for the first time to work as a CFO of a company in Australia. He visits…

Computation of total income of Mr. Prabhjot for the A.Y. 2025-26 S. No. Particulars Amount (₹) 1. Salary (computed) from company in Australia (Not taxable, since it neither received in India nor accrue or arise in India) - 2. Dividend from South African Company received in South Africa (Not taxable, since it neither received in India nor accrue or arise in India) - 3. Interest received from South Indian Bank, India (Taxable, since it is deemed to accrue or arise in India) 21,000 4. Loss from business in South Africa (controlled from India) (Not taxable, since it neither received in India nor accrue or arise in India) - 5. Agricultural income from a land in Gujarat [Exempt u/s 10(1)] - Gross Total Income 21,000 Less: Deduction under Chapter VI-A Section 80TTA (Interest on saving bank account upto 10,000) 10,000 Total Income 11,000 Under section 6(1), an individual is said to be a 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 during the 4 years immediately preceding the previous year for a total period of 365 days or more. In case of Indian citizen leaving India for the purpose of employment, the only condition for being a resident in India is to stay in India during the previous year for 182 days or more. During the previous year 2024-25, Mr. Prabhjot, an Indian citizen, was in India for 175 days only (i.e., 30+31+30+31+31+22 days). Thereafter, he left India for employment purposes. Since he does not satisfy the minimum criteria of 182 days, he is a non-resident for the A.Y. 2025-26. As per section 5(2), in case of a non-resident, only the following incomes are chargeable to tax in India: (i) Income received or deemed to be received in India; and (ii) Income accruing or arising or deemed to accrue or arise in India.