Residential status of Individuals

Under section 6(1), an individual is said to be resident in India in any previous year, if he satisfies any one of the following conditions:

1. (i)  He has been in India during the previous year for a TOTAL period of 182 days or more,(=+182days) or
   
2. (ii)  He has been in India during the 4 years immediately PRECEDING the previous year for a total period of 365 days or more . (=+365days) and has been in India for at least 60 days (=+60days) in the previous year.
   

If the individual satisfies any ONE of the conditions mentioned above, he is a resident. 
If BOTH the above conditions are NOT satisfied, the individual is a non-resident. 

• The term “stay in India” includes stay in the territorial waters of India (i.e. 12 nautical miles into the sea from the Indian coastline). Even the stay in a ship or boat moored in the territorial waters of India would be sufficient to make the individual resident in India. 

• It is NOT necessary that the period of stay must be continuous or active nor is it essential that the stay should be at the usual place of residence, business or employment of the individual.

• For the purpose of counting the number of days stayed in India, both the date of departure as well as the date of arrival are considered to be in India.

• The residence of an individual for income-tax purpose has nothing to do with citizenship, place of birth or domicile. An individual can, therefore, be resident in more countries than one even though he can have only one domicile. 

1. 
   
2. Exceptions:
   The following categories of INDIVIDUALS will be treated as RESIDENTS = only if the period of their STAY during the relevant previous year amounts to 182 days(=+182days) 
   

   1. (i)  Indian citizens, who leave India in any previous year as a member of the crew of an Indian ship or for purposes of employment outside India, or
      
   2. (ii)  Indian citizen or person of Indian origin (A person is said to be of Indian origin if he or either of his parents or either of his grandparents were born in undivided India.)  engaged outside India in an employment or a business or profession or in any other vocation, who comes on a visit to India in any previous year 
3. In other words even if such persons were in India for 365 days during the 4 preceding years and 60 days in the relevant previous year, they will not be treated as resident.

Resident and ordinarily resident/Resident but not ordinarily resident 

• Only INDIVIDUALS and HUFs can be resident but not ordinarily resident (ROR) in India. 
• All other classes of assessees can be either a resident or non-resident. 
• A not-ordinarily resident person (NOR) is one who satisfies ANY ONE of the conditions specified under section 6(6).

1. (i)  If such individual has been NON-RESIDENT in India in any 9 out of the 10 previous years PRECEDING the relevant previous year, or ( Resident = in ANY 2years = Out of last 10years Preceding years)
   
2. (ii)  If such individual has during the 7 previous years preceding the relevant previous year been in India for a period of 729 days or less (=less 729days) (ie. Stay in India +=730days in LAST 7 preceding years).
   

If the individual satisfies both the conditions mentioned above, he is a resident and ordinarily resident but if only one or none of the conditions are satisfied, the individual is a resident but not ordinarily resident. 

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