Answer ( 1 )

  1. For the purpose of Income-tax Law, a HUF can have any one of the following residential status:

    (1) Resident and ordinarily resident in India

    (2) Resident but not ordinarily resident in India

    (3) Non-resident

    Every year the residential status of the taxpayer is to be determined by applying the provisions of the Income-tax Law designed in this regard (discussed later) and, hence, it may so happen that in one year the HUF would be a resident and ordinarily resident and in the next year it may become non-resident or resident but not ordinarily resident and again in the next year its status may change or may remain same. ​

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