Dear friends,
An individual is Indian resident during an assessment year. He is assessed to Income Tax in his individual capacity. He is also Karta of HUF. In addition to he is trustee of various trust in India as well as beneficiary of certain trust in India.
During later assessment year due to his stay beyond specified period as prescribed under section 6 of the IT Act, 1961, he becomes nonresident in India and accordingly he is liable for income tax in India which is received or is deemed to be received in India or accrues or arise or is deemed to accrue or arise in India in his individual capacity.
However a question arises with respect to the taxability of the income of the HUF of which he is Karta and trust of which he is trustee or he is beneficiary in some other trust. Whether that shall still be taxable in India.
CAclubindia
