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

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....er the person is a resident, non-resident, or resident but not ordinarily resident in India during a particular tax year. This determination is important because the scope of income that is taxable in India depends on the residential status of the taxpayer. Income tax is levied on the total income of the assessee, and under the provisions of Section 6 of the Income Tax Act, 2025, the taxability of....

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.... Resident (ROR) • Taxable on: • Income received or is deemed to be received by him in India in the previous year • Income accrues or arises or is deemed to accrue or arise to him in India during such year • Income accrues or arises to him outside India during such year b. Resident but Not Ordinarily Resident (RNOR) • Taxable on: ....

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...., companies, and other entities. For individuals, the law mainly considers the number of days of stay in India during a tax year and in the preceding years. In certain situations, special provisions apply to Indian citizens leaving India for employment, crew members of ships, and persons of Indian origin visiting India. The section also introduces the concept of "not ordinarily resident" to cov....

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....t but Not ordinarily Resident and • Non - Resident The concept of Residential Status of a person has nothing to do with citzenship of a country. An Indian, who is a citizen of India can be non-resident for Income Tax purposes, whereas a person who is foreign national/citizen can be Resident of India for Income Tax purposes. Residential Status of a person depends upon the te....