Habitual abode

Habitual Abode – In taxation, habitual abode refers to the place where an individual ordinarily resides or has their permanent home and spends the majority of their time. It is a key factor in determining tax residency status, which influences how and where an individual is taxed on their income. The concept varies across jurisdictions, but generally, a person’s habitual abode is considered their primary place of residence, reflecting their regular, continuous, and settled presence in a country. Tax authorities use this to establish whether the individual is liable for taxation as a resident or a non-resident.

Example: If an individual lives and works in India for most of the year, India may consider it their habitual abode, making them liable for income tax on global income.