Section 6(1A)

Section 6(1A) — the law in short

What the courts have decided on section 6(1A), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• CBDT Press Release 02.02.2020 on residence CBDT Circulars & InstructionsHelps taxpayerSuperseded by amendment
  I work in the Gulf and pay no tax there. Does the deemed residence rule tax my foreign salary?
  No. The Board clarified that the provision is an anti-abuse measure aimed at Indian citizens who shift their stay to a low or no-tax jurisdiction, not at bona fide workers abroad, and that income earned outside India is not taxed here unless it is derived from a business controlled in, or a profession set up in, India.
• Statutory position — s.6(2) and s.6(6)(b): an HUF is resident unless control and management is situated WHOLLY outside India, and the not-ordinarily-resident test looks to the manager CBDT Circulars & InstructionsCuts both ways
  The karta of my client's HUF has lived in Dubai for years and all the family's decisions are taken there, but one property is managed from India by his brother. The Assessing Officer says the HUF is resident in India. On what test?
  On the test in s.6(2): a Hindu undivided family, firm or other association of persons is said to be resident in India in any previous year in every case EXCEPT where during that year the control and management of its affairs is situated wholly outside India. The word that decides the case is "wholly". Any part of the control and management of the family's affairs being situated in India during the previous year makes the family resident. If the family is resident, s.6(6)(b) then asks whether it is "not ordinarily resident": it is, if its MANAGER has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for 729 days or less.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.