Answer ( 1 )

  1. 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.​

Leave an answer