A Short Summary of New Provisions of Residential Status of An Individual

RESIDENTIAL STATUS OF AN INDIVIDUAL

Resident

Indian Citizen or person of Indian Origin

– Stay in India for 182 days or more during the relevant year OR

– Stay in India for 120 days or more during the relevant year and 365 days or more during the preceding four years

– Total Income other than foreign Income exceeds Rs. 15.00 lacs

Any other person (Old provision)

– Stay in India for 182 days or more during the relevant year OR

– Stay in India for 60 days during the relevant year and 365 days during the preceding four years

Deemed Resident

Indian Citizen

– Total Income other than foreign Income exceeds Rs. 15.00 lacs AND

– Not liable to tax in any other country or territory by reason of his domicile or residence

Resident & Ordinarily Resident (Old Provision)

– Non Resident in less than 9 out of 10 previous years preceding the relevant year, AND

– Has been in India for 730 days or more during preceding 7 years.

Not Ordinarily Resident

– Non Resident for at least 9 out of 10 preceding previous years, OR

– Has been in India for 729 days or less during preceding 7 years, OR

– An Indian Citizen or a person of Indian origin whose total income (other than income from foreign sources) exceeds Rs. 15 lakhs during the previous year and who has been in India for a period of 120 days or more but less than 182 days; OR

– Deemed Resident under Section 6(1A)

Non-Resident

If an Individual who does not fall under any of the above conditions, he is said to be a Non-Resident.

Few more points:

a. Income other than foreign Income: Indian Income + Income accruing outside India from a business controlled in or a profession set up in India

b. There is no change in the provisions relating to Indian citizen who leaves India as a crew member or for the purpose of employment outside India.

Please Read-  Clarification in respect of residency – section 6 of Income-tax Act, 1961