Residential Status of an "Individual"

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....ent • Resident but Not Ordinarily Resident (RNOR) • Non-Resident (NR) Sub-section (2) - Basic Conditions for Individual Residency An individual becomes Resident in India if any one of the following conditions is satisfied: (a) Condition 1 - Person stays in India 182 days or more during the tax year. (b) Condition 2 - Person stays in India: • 60 days or more in the relevant tax year, AND • 365 days or more in the previous 4 years. Condition 2 does not apply in the following case 1. in the case of an individual who is a citizen of India and leaves India in any tax year- (a) as a member of the crew of an Indian ship, as defined in section 3(18....

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.... a foreign-bound ship leaving India Then total number of days in India, in respect of that voyage, shall be determined in such manner and subject to such conditions, as may be prescribed. Deemed Resident [ Sub Section (7) & (8) ] • Irrespective of the provisions of sub-sections (2) to (6), an individual shall be deemed to be resident in India for a tax year, if he-  • (a) is a citizen of India; • (b) is not liable to tax in any other country or territory due to his domicile, residence, or similar criteria; and • (c) has total income exceeding fifteen lakh rupees during such tax year (other than the income from foreign sources). [ Sub section (7) ] • Exception - The ....

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.... OF AN 'INDIVIDUAL' [ Section 6 of the Income Tax Act, 1961 ] An individual may either be: • Resident in India; or • Deemed to be resident in India; or • Non-Resident in India Section 6 Residential Status of an Individual If an Individual Resident in India, we have to further determine he is: • Resident and ordinarily resident in India (R-OR) - {if he satisfies any 1 of the basic conditions u/s 6(1) and both the additional conditions stipulated u/s 6(6)}, or • Resident but not ordinarily resident in India (R-NOR) - {if he satisfies any 1 of the basic conditions u/s 6(1) or any 1 of the additional conditions u/s 6(6)}. Further if an individual is deemed to be r....

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....from foreign sources exceeding 15 Lakhs during previous year, in above condition (b) '60 days' shall be substituted by '120 days'. Section 6(6) determines that an Individual is said to resident and ordinarily resident in India if he satisfies both of the following two conditions (Additional Conditions); • He is resident in India in 2 out of the 10 previous years immediately preceding the relevant previous year and, • His stays in India for 730 days or more in 7 previous years immediately preceding the relevant previous years Status in case of a member of the crew of a ship Note: (w.e.f. 1st April 2015) - [Rule 126] For the purposes of clause (1) of section 6, in case of an individual, being ....