Meaning of f Assessment Year

Assessment Year

Assessment year may be defined as a year in which the income tax of the previous year is to be assessed. It is a period of twelve months starting from April I of every year and ending on March 31 of the next year. For instance, the assessment year 2013‑2014 commenced on 1st April, 2012 and will end on March 31,2013.

Previous Year

Income of the previous year is taxed in the immediately following assessment year. For instance, income earned during the previous year 2012‑2013 is taxable in the immediately following assessment year i.e. 2013‑2014.

Assessee

Assessee means a person by whom any tax or any other sum of money (i.e. Penalty or interest) is payable under the Act:

Person

The term person includes:

An individual
Hindu Undivided Family ( HUF)
Company
Firm
An association of person
Body of individuals(AOP/ BOI)
Local authority,

Residential Status

The residential status of an assessee determines the extent of his global income taxable in India. Therefore it follows that taxable income of an assessee cannot be determined unless residential status is determined.

The residential status is determined solely on the basis of physical presence of the assessee in India and it is computed separately for each Previous Year Hence a person may be resident for one Previous Year and Non‑resident in the next year.

 

If a person is in India for

Basic Conditions

182 days or more during the Previous Year; or

60 days or more during the Previous Year and 365 days or more during the 4 years immediately preceding the Previous Year

Additional Conditions:-

He has been resident in India in at least 2 years out of 10 years.
He has been in India for 730 days or more during past 7 years.

(ROR)

Resident & Ordinarily Resident in India (One main & Two Additional)

(RNOR)

Resident & Not Ordinarily Resident in India (One main only)

(NRI)

Non Resident in India (None of main Conditions)