Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Prithvi's father lived in Nepal and crossed the border daily for the purpose of work. According to you which of the following is true in regards to Prithvi's father?

Options:

Prithvi's father is a resident of India

Prithvi's father is a non-resident of India

Prithvi's father will be considered as a resident of India when he is on work and when he travel back to Nepal he becomes the resident of that country. 

Prithvi's father will not be considered as resident of either India or Nepal

Correct Answer:

Prithvi's father is a non-resident of India

Explanation:

Based on the given information, it can be inferred that Prithvi's father is a non-resident of India because he is living in Nepal and only crossing the border daily for work purposes. To be considered a resident of India, a person needs to fulfill certain criteria, such as residing in India for a specified period of time, having income earned or received in India, and others. Since Prithvi's father lives in Nepal, he cannot be considered a resident of India.

Few examples of Non-residents are:

  • International organisations like world bank, W.H.O.
  • The crew members of foreign shifts, aircrafts etc.
  • Workers from across the borders who cross the border regularly for work purpose (Prithvi's father)