RESIDENTIAL STATUS OF ‘HUF’, ‘FIRM’, ‘AOP’ & BOI - Income Tax - Ready Reckoner - Income Tax

RESIDENTIAL STATUS OF HUF , FIRM , AOP BOI Section 6(2) of the Act provides that status of these persons shall be determined as per Tests given below: Resident Non- Resident Not Ordinarily Resident It means that if a HUF, FIRM, AOP BOI is controlled from India even partially it will be Resident assessee. The Control and management of affairs means that decision making power for vital affairs is situated in India. In case of a Firm, it is said that the control and management of firm is situated at a place where partners meet to decide the affairs of the firm. A HUF, FIRM, AOP BOI shall be Non-Resident if the control and management affairs is situated wholly outside India. HUF will be Not Ordinarily Resident if: i. Its Karta has not been resident in India in 9 out of 10 previous year preceding the relevant accounting year or ii. The Karta had not during the 7 previous year preceding the relevant accounting year been present in India for a period or periods amounting in all to 730 days.