Residence in India

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...., who leaves India in any previous year ^3[as a member of the crew of an Indian ship as defined in clause (18) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958), or] for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words "sixty days", occurring therein, the words "one hundred and eighty-two days" had been substituted ; (b) being a citizen of India, or a person of Indian origin within the meaning of Explanation to clause (e) of section 115C, who, being outside India, comes on a visit to India in any previous year, the provisions of sub-clause (c) shall apply in relation to that year as if for the words "sixty days", occurring therein, the wor....

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....gement of its affairs is situated wholly outside India. ^9[(3) A company is said to be a resident in India in any previous year, if- (i) it is an Indian company; or (ii) its place of effective management, in that year, is in India. Explanation.-For the purposes of this clause "place of effective management" means a place where key management and commercial decisions that are necessary for the conduct of business of an entity as a whole are, in substance made.] (4) Every other person is said to be resident in India in any previous year in every case, except where during that year the control and management of his affairs is situated wholly outside India. (5) If a person is resident in Ind....

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.... the expression "income from foreign sources" means income which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India). ^15[and which is not deemed to accrue or arise in India.]].]     ************** NOTES:- 1.  Omitted vide Section 3 of the Finance Act, 1982 w.e.f. 01-04-1983 before it was read as, "(b) maintains or causes to be maintained for him a dwelling place in India for a period or periods amounting in all to one hundred and eighty-two days or more in that year and has been in India for thirty days or more in that year; or"  2.  Substituted vide Section 3 of the Direct Tax Laws (Second Amendment) Act, 1....

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....d as, "one hundred and fifty day's'' 5.  Substituted vide Section 4 of the Finance Act, 2003 w.e.f. 01-04-2004 before it was read as,  "(6) A person is said to be "not ordinarily resident" in India in any previous year if such person is- (a) an individual who has not been resident in India in nine out of the ten previous years preceding that year, or has not during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and thirty days or more ; or (b) a Hindu undivided family whose manager has not been resident in India in nine out of the ten previous years preceding that year, or has not during the seven ....