Residential Status OF HUF and other person PDF

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These notes are for one of the topic of income tax....

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RESIDENTIAL STATUS OF HUF

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Residential Status of HUF depends on the place where Control & Management (C&M) of HUF is situated.

If C &M is situated wholly/partly India India

RESIDENT

If C &M is situated wholly outside

NON-RESIDENT

DETERMINATION OF ROR/RNOR  Status of KARTA will determine whether HUF is ROR/RNOR. If KARTA is ROR → HUF is ROR & If KARTA is RNOR → HUF is RNOR.

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C&M is situated at a place where ‘Controlling & Directing power’ works

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C&M refers to Central C&M & not day-to-day business activities. Business may be done from outside India & yet its C&M may be within India.

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Place of Control → May differ from usual place of running business & registered office. This is because C&M need not be necessarily done from the place of business/from registered office.

RESIDENTIAL STATUS OF FIRMS/ AOP/LA/AJP

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Residential Status depends on Control & Management.

If C &M is situated wholly/partly India India

If C &M is situated wholly outside

NON-RESIDENT

RESIDENT

RESIDENTIAL STATUS OF COMPANY A Company shall be Resident in India if: 1.

It is an Indian company;

2.

In case of Foreign Company - POEM is in India in that PY.

POEM: refers to Place of Effective Management. A Place where key management & commercial decisions necessary for the conduct of the business of entity as a whole are substantially made. Example: place where Board of Meeting of company is held.

Imp: POEM guidelines shall not apply to a company having turnover or gross receipt of Rupees 50 crores or less in a financial year. So ,

Indian company - ALWAYS RESIDENT

Foreign Company -

Turnover Rupees 50 Crores -- Based on POEM

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