Introduction of Residential Status - Section (New) 6 / (Old) 6

Residential status in income tax determines taxable scope, distinguishing resident, RNOR and non resident tax consequences.

Residential status classifies taxpayers as Resident, Resident but Not Ordinarily Resident (RNOR) or Non Resident to determine taxable scope: residents may be taxed on global income, non residents on India sourced income, and RNORs on India sourced income plus foreign income only when derived from a business controlled in India or a profession set up in India. The classification relies on territorial connections and days of physical presence, includes special provisions for certain travellers and citizens, and applies year by year; assessors require full disclosure of material facts, and corporate status may be determined by place of effective management.