Atul walks 5 km toward North and then turns to the right. After walking 3 km he turns to the right and walks 5 km. In which direction is he now, with respect to his starting point?

Let's trace Atul's path step-by-step from his starting point (say, point O):
1. Atul walks 5 km North to reach point A.
2. He turns right (towards East) and walks 3 km to reach point B.
3. He turns right again (towards South) and walks 5 km to reach point C.

Since the downward distance (5 km South) is equal to the initial upward distance (5 km North), point C lies horizontally in line with the starting point O. Point C is exactly 3 km to the East of point O.

Thus, he is in the East direction with respect to his starting point.