A person by whom Income tax or any other sum of money is payable under the Indian Income Tax Act are either (a) resident in India, or (b) non-resident in India.

1. The residential status of an assessee is to be determined for each previous year.

2. A non-resident is liable to pay income-tax on the total income of a particular year, which -

(a) is received or is deemed to be received in India in such year, or

(b) accrues or arises or is deemed to accrue or arise to him in India during such year.

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