RESIDENT AND ORDINARILY RESIDENT

Resident and ordinarily resident/Resident but not ordinarily resident

Only individuals and HUFs can be resident but not ordinarily resident in India. All other
classes of assessees can be either a resident or non-resident. A not-ordinarily resident person
is one who satisfies any one of the conditions specified under section 6(6).

(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

(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.

Note: In simpler terms, an individual is said to be a resident and ordinarily resident if he satisfies both the following conditions:

(i) He is a resident in any 2 out of the last 10 years preceding the relevant previous year, and

(ii) His total stay in India in the last 7 years preceding the relevant previous year is 730 days or
more.

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.