MCQs on Residential Status and Tax Incidence

Under the Income Tax Act, residential status is determined for:

• Financial year

• Assessment year

• Calendar year

• Any 3 years

An individual is considered a resident in India if they stay for:

• 120 days or more in the previous year

• 60 days or more in India in the previous year and 365 days or more in the 4 years preceding it

• 182 days or more in any assessment year

• Less than 60 days in India

A person who satisfies both basic and additional conditions is called:

• Resident but not ordinarily resident

• Non-resident

• Resident and ordinarily resident

• Deemed resident

A Hindu Undivided Family (HUF) is considered resident if:

• Karta stays in India for 60 days

• HUF is controlled and managed wholly or partly in India

• Any member is a resident

• Karta is not a citizen of India

A company is said to be a resident in India if:

• It is registered outside India

• Its place of effective management is outside India

• It is registered in India or has its place of effective management in India

• It has no business in India

Which of the following is not an additional condition for an individual?

• Resident in India for at least 2 out of 10 previous years

• Stay in India for 730 days or more during 7 years preceding the previous year

• Income earned outside India

• All of the above

A person who satisfies only one basic condition is called:

• Resident and ordinarily resident

• Resident but not ordinarily resident

• Non-resident

• Deemed resident

Residential status helps in determining:

• Amount of salary

• Scope of total income taxable in India

• Place of filing returns

• Business operations

Residential status is determined separately for:

• Every 5 years

• Every month

• Each previous year

• Assessment year only

Non-residents are taxed in India on:

• Global income

• Indian income only

• Capital receipts

• Remittances from abroad