Mr. Arjun Mehta (36 years), an Indian citizen, working in India in an MNC got a job opportunity outside India during the previous year 2025-26.…

CA Final · Direct Tax Laws and International Taxation · MTP · November 2026
Mr. Arjun Mehta (36 years), an Indian citizen, working in India in an MNC got a job opportunity outside India during the previous year 2025-26. Accordingly, he left India on 15th July 2025 to take up employment in Country X. Thereafter, he had not visited India during the P.Y. 2025-26. He earned the following Incomes during the P.Y. 2025-26: Income earned in India: ₹ 8,00,000 as salary in India for services rendered in India ₹ 2,00,000 as rent from a house property situated in India. ₹ 2,00,000 as income by way of interest on moneys standing to his credit in a Non-resident (External) Account (NRE A/c). Income earned outside India: ₹ 26,00,000 as salary from employment in Country X, which was received in Country X, for services rendered outside India. ₹ 4,00,000 as interest on fixed deposit from a bank account in Country X, which was received outside India. Assume there is no DTAA between India and Country X and Mr. Arjun Mehta is paying tax as per the default tax regime under section 115BAC.
(A) Resident and Ordinarily Resident
(B) Resident but Not Ordinarily Resident
(C) Non-Resident
(D) Deemed Resident

Suggested Answer and Working Notes:

Correct Answer: Option (C)

Non-Resident

Topics: Non-Resident Taxation, Assessment Procedure

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