Residential Status

Vaibhav Banjan
Residence -Individual
An Individual is said to be resident in India
in any previous year, if he satisfies at least
one of the following conditions:
1) He is in India in the previous year for a
period of 182 days or more.
2) a) He is in India for a period of 60 days
or more during the previous year
and
b) 365 days or more during 4 years
immediately preceding the previous year.
Exception to conditions (2)
Period 60 Days is extended to 182 days
in the following cases.
i) An Indian citizen who leaves India during
the previous year for the purpose of
employment outside India
ii) Indian citizen who leaves India during the
previous year as a member of crew of
Indian ship.
iii) Indian citizen or person of Indian origin
who comes on a visit to India during the
previous year.
A person is deemed to be of Indian
origin if he, or either of his parents or
any of his grand-parents was born in
undivided India.
Resident and Ordinarily Resident
u/s 6(6)
Individual is treated as Resident and
Ordinarily Resident in India if he satisfies
the following additional conditions:
i) He has been resident in India in at lest 2 out
of 10 previous year immediately preceding
the previous year.
ii) He has been in India for a period of 730
days or more during 7 years immediately
preceding the relevant previous year.
Resident and Not Ordinarily
Resident u/s 6(6)
Individual who satisfies at least one of
the basic conditions u/s 6 (1) but
does not satisfy the additional
conditions under u/s 6 (6)
Non Resident
Individual who does not satisfy at
least one of the basic conditions
u/s 6 (1).
Hindu Undivided Family: u/s 6(2)

A Hindu undivided family is said to be

resident in India if control and management
of its affairs is wholly or partly situated in
India.
A Hindu undivided family is said to be non-
resident in India if control and management
of its affairs is situated wholly outside India.
Residential status of Karta is considered for
determining whether a Resident family is
ordinarily Resident.
Firm and Association of Person.:
u/s 6(2)
A partnership firm and a association of
persons are said to be resident in India if
control and management of their affairs are
wholly or partly situated within India during
the relevant previous year.
They are, however, treated as Non
Resident in India if control and
management of their affairs are situated
wholly outside India.
Company u/s 6 (3)
Indian company is always resident in India.
Foreign company is resident in India only if,
during the previous year, control and
management of its affairs is situated wholly
in India.
Foreign company is Non resident in India
only if, during the previous year, control
and management of its affairs wholly or
partly situated out of India.
Residential Status of Every Other
Person
Every Other person is said to be
resident in India if control and
management of his affairs are wholly
or partly situated within India during
the relevant previous year.
However they are treated as Non
Resident in India if control and
management of their affairs are
situated wholly outside India.
Scope of Total Income :
ROR RNOR NR
Indian Income
Income Received in India T T T
Income Accrued in India T T T
Income Deemed to be
received in India T T T

Income Deemed to Accrue in

India T T T
Foreign Income

Income from Business is controlled

from India T T NT
Income from Profession
set up in India T T NT

Income from Business is controlled

outside India T NT NT
Income from Profession set up
outside India T NT NT
Other Foreign Income
( Rent, Interest etc.) T NT NT
Income Deemed to Accrue or Arise
in India
Income from house property (residential or commercial)
in India
Income from any other asset in India
Capital gain from asset located in India
Income from business connection in India
Salary from services rendered in India
Salary from services rendered by a citizen for
government of India outside India
Interest income or royalty/fee income from government
of India
Interest income or royalty/fee income received from a
resident Indian (for purpose other than overseas
business)
Interest income or royalty/fee income received from a
non-resident Indian for running business in India