Mr. Varun, an Indian citizen, engaged in consultancy business in India. He shifted to Dubai in the year 2019 to expand his consultancy business…

Determination of residential status As per section 6(1), an Indian citizen who, being outside India comes on a visit to India during the relevant previous year is said to be resident in India if he has been in India during the previous year for a total period of 182 days or more. However, if his total income, other than the income from foreign sources exceeds 15lakhs during the previous year, he will also be treated as resident in India if he has been in India for at least 120 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. Mr. Varun visited India only for 100 days during the P.Y. 2024-25, hence he is a non-resident as per section 6(1) irrespective of whether his total income, other than the income from foreign sources exceeds 15lakhs or not. As per section 6(1A), an Indian citizen, having total income, other than the income from foreign sources, exceeding 15lakhs during the previous year would be deemed to be resident in India in that previous year, if he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature. Computation of total income, other than the income from foreign sources, of Mr. Varun Particulars Particulars ₹ Income from consultancy business in India [Accrued or arisen in India] 10,00,000 Income from consultancy business in Dubai [Income derived from a profession set up in India] 4,00,000 Agricultural income from land in Kerela [Exempt u/s 10(1)] Dividend from Indian company 50,000 Less: Deduction for interest expenses upto 20% 10,000 40,000 14,40,000 Since Mr. Varun's total income, other than the income from foreign sources, does not exceed 15lakhs, he is not deemed resident as per section 6(1A). Thus, Mr. Varun is a non-resident for A.Y. 2025-26.