As all of you are aware, under the taxation statues, mainly direct taxation, ‘residence’ of a person plays an important and significant role. Many of the direct taxation laws across the globe, stipulate that a person resident in their jurisdiction has to offer all the global income to tax. Being resident of a jurisdiction brings to tax all their income which would have not been subjected to tax if he was not a resident in the first place. Hence, the concept of ‘residence’ is of utmost importance since it has direct bearing on the taxes.
In the Indian scenario, Section 6 of Income Tax Act, 1961 (for brevity ‘ITA’) deals with ‘Residence in India’. The said section deals with residence of all type of persons namely individual, Hindu Undivided Family, firm, association of persons and company. Of all the lot, we will be dealing with ‘individual’ in the current article. The said article is written in the context of changes to Section 6 brought vide Finance Act, 2020.
Read more: Residence in India - A New Colour by Finance Act, 2020
