In this article we are going to discuss about the residential status of a person as per Income Tax Act, 1961 which determines which income of an individual is taxable as per Indian Laws.

Residential Status of any individual (Section 6)

Basic Conditions

(1) (2) (3)
In case of an Indian Citizen who leaves India during the previous year for the purpose of employment or in the case of an Indian Citizen who leaves India as a member of the crew of an Indian ship or in the case of an Indian citizen who leaves India as a member of the crew of a foreign bound ship, the period of stay in India shall be determined as per the conditions as may be prescribed. In case of an Indian citizen or a person of Indian Origin (who is abroad) who comes to India on a visit during the previous year. In case of an individual other than that mentioned in columns (1) and (2)
A) Presence of atleast 182 days in India during the previous year.

B) Not Applicable.

A) Presence of atleast 182 days in India during the previous year.

B) Not Applicable.

A) Presence of atleast 182 days in India during the previous year.

OR

B) (i) Atleast 60 days during the previous year.

AND

(ii) Atleast 365 days in total during the 4 years preceding the previous year.

Additional Conditions:

  1. The Individual should be a resident in atleast 2 years, out of the 10 years, immediately preceding the Previous Year.

AND

  1. The Individual should have a minimum aggregate stay of 730 days or more in the 7 years preceding the relevant previous year.
Resident & Ordinarily Resident (R & OR) Resident but Not Ordinarily Resident (RNOR) Non Resident (NR)
Must satisfy atleast one of the basic conditions & both the additional conditions. Must satisfy atleast one of the basic conditions & satisfy one or none of the additional conditions. Not satisfying any of the basic conditions.

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Location: Mumbai, Maharashtra, IN
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2 responses to “Residential Staus as per Income Tax Act,1961”

  1. vswami says:

    RIDER
    in the second line from top, – in place of ‘his”, TO BE READ- “”purchaser’s”.
    Regarding the envisaged ” peculiar problems” : one such instance could be where the ‘transferor is a “NRI” , within its meaning of FEMA, who still mat not be a “resident ” as per the IT Act.
    For a dilation, suggest to locate and read through the related Posts on this website; also on the website of Lci , personal BLOGS (SWAMILOOK) so on, to be GOOGLE searched for in public domain.

    courtesy

  2. vswami says:

    OFFHAND

    Residential status of a ‘person’, of an individual, is of relevance for determining his income includible in his total income”. But it is also .of relevance for fixing his liability/obligation to comply with TDS requirement. That entails certain peculiar problems in exceptional circumstances; for instance, for TDS u/s 194IA. Look up the two articles on this critical topic, published on this website –

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