RESIDENTIAL STATUS – SECTION 6
- The tax incidence on a Person, depends upon the Residential Status of such person.
- Resident taxpayers are liable to pay tax on their global income (i.e., Indian income and foreign income).
- However, the non-resident taxpayers are taxable only for their India sourced income.
RESIDENTIAL STATUS – THREE CATEGORIES – SECTION 6
TAXPAYERS ARE CLASSIFIED INTO THREE BROAD CATEGORIES ON THE BASIS OF THEIR RESIDENTIAL STATUS : –
- Resident and Ordinarily Resident (“ROR”)
- Resident but not Ordinarily Resident (“RNOR”)
- Non- Resident
RESIDENTIAL STATUS – ROR VS RNOR