Mr. Nikhil is an Indian citizen living in Dubai since year 2005. He never came to India for a single day since then. He earned the following incomes…

I. Mr. Nikhil is an Indian citizen living in Dubai since 2005 who never came to India for a single day. He would not be a resident in India for the P.Y. 2024-25 on the basis of number of days of his stay in India as per section 6(1). However, he would be deemed resident in India for the P.Y. 2024-25 by virtue of section 6(1A) if he is having total income (excluding income from foreign sources) exceeds 15lakhs during the previous year; andnot liable to tax in Dubai. Computation of Total Income (excluding income from foreign sources) for A.Y.2025-26 Particulars ₹ (i) Income accrued and arisen in Dubai (not considered) (ii) Income accrued and arisen in India (Considered) 5,00,000 (iii) Income deemed to accrue or arise in India (Considered) 8,00,000 (iv) Income arising in Dubai from a profession set up in India (Considered) 10,00,000 Total income (excluding income from foreign sources) 23,00,000 Since Mr. Nikhil fulfills the above condition, he is a deemed resident under section 6(1A). A deemed resident is always a resident but not ordinarily resident in India (RNOR). His taxable income will be 23lakhs as calculated above. II. If income arising in Dubai from a profession set up in India is 2lakhs instead of 10lakhs, his total income (excluding income from foreign sources) would be only 15lakhs. Since the same does not exceed the threshold limit of 15lakhs, he would not be deemed resident. Accordingly, he would be non-resident in India for the P.Y. 2024-25 and hence, his total income would be only 13lakhs (aggregate of 5 lakhs + 8 lakhs). III. If Mr. Nikhil is not an Indian citizen and his parents were born in undivided India, he would be person of Indian origin. In such case, the provisions relating to deemed resident would not apply to him. Accordingly, he would be non-resident in India during the P.Y. 2024-25 and his total income would be 13lakhs.