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Question
Identify, which of the following is not considered as ‘Normal Resident’ of India?
Options
An Indian citizen working in U.S.A. embassy located at New Delhi.
An Indian officials working in Indian embassy in China.
An Indian diplomats visiting Canada for a summit.
An Indian working in an American Company located in New York for a period of more than 1 year.
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Solution
An Indian working in an American Company located in New York for a period of more than 1 year.
Explanation:
An individual is considered a “normal resident” of a country if they have lived there for more than a year and have their primary source of income in that country. Because this person has been living and working in New York for more than a year, their economic focus has switched to the United States. As a result, they are classed as a resident of the United States and a non-resident of India for national income accounting purposes.
