Is the residential status of a person relevant for determining the taxability of the income in his hands?

Ans. Yes, the residential status of a person earning income is very much relevant for determining the taxability of such income in his hands.

Taxability of any income in the hands of a person depends on the following two things :

(1) Residential status of the person as per the Income-tax Law; and

(2) Nature of income earned by him.

Hence, residential status plays a vital role in determining the taxability of the income.