Split residency conundrum resolved by Bangalore ITAT through ‘centre of vital interest’ test

DCIT Vs. Sri Kumar Sanjeev Ranjan (ITAT Bangalore) Under the Indian income tax law, the scope of taxable income depends upon the residential status of an assessee. In case of an individual, residential status depends on the number of days of stay in India in a given tax year. As per Section 6 (1) of the Income Tax Act, 1961 (Act), an individual would be considered as a resident in India – If his stay during the previous year amounts to 182 days or more in aggregate or If his stay during the four years preceding to the previous year amounts to 365 days or more in aggregate and 60 days or mor...