The Income-tax Law has its own set of provisions for determining the residential status of a person.

The residenstal status depends on a person earning income is very much relevant for determining the taxability of such income in his hands.

Hence, residential status plays a vital role in determining the taxability of the income.

The following chart highlights the tax incidence in case of different persons:

* Where ROR stands for resident and ordinarily resident. RNOR means resident but not ordinarily resident. NR means non-resident.

Incomes are treated as incomes deemed to be received in India:

• Interest credited to recognised provident fund account of an employee in excess of 9.5% per annum.
• Employer's contribution to recognised provident fund in excess of 12% of the salary of the employee.
• Transferred balance in case of reorganisation of unrecognised provident fund.

Source: IncomeTax Site