If control and management wholly outside India, then it is considered Non Resident
Otherwise, it is a Resident
How to determine ROR/RNOR
If Karta ROR : HUF also ROR
If Karta RNOR : HUF also RNOR
QUESTIONS
Q1
The business of a HUF is transacted from Australia and all the policy decisions are taken
there. Mr. E, the karta of the HUF, who was born in Kolkata, visits India during the P.Y. 2015-
16 after 15 years. He comes to India on 1.4.2015 and leaves for Australia on 1.12.2015.
Determine the residential status of HUF for A.Y. 2016-17
View answer
Since control and management is outside India,HUF is a Non Resident
Q2
What if some of the policy decisions taken in Australia and some in India
View answer
Step 1
In this case ,since control and management of HUF is partly in India ,it is a Resident.
Step 2
Determining ROR OR RNOR
Karta has stayed in India for 245 days (i.e. 30+31+30+31+31+30+31+30+1 days) during 2015-16,hence Karta is a Resident
But since he has come into Indihe does not satisfy condition for ROR
( Resident for atleast 2 years in last 10 years
+
Stays in India for 730 Days in Last 7 years)
Hence Karta is a RNOR
Since Karta is an RNOR, HUF is also RNOR
-ea-