Residence in India for the purpose of the Income-tax Act

Residence in India for the purpose of the Income-tax Act

 

The income-tax liability of an assessee is calculated on basis of his total Income. What is to be included in total income of assessee is greatly influenced by his residential status in India.

An assessee can be categorized as a resident in India or a non-resident in India during the previous year. Further, if the assessee is an individual or a HUF and he is resident in India, his residential status is further sub-classified as a resident and ordinarily resident or resident but not ordinarily resident.

The residential status of a person is categorised into the following categories:

Individual	When treated as a resident?	When treated as a resident but not ordinarily resident?
Indian Citizen visiting India having income* < Rs. 15 lakhs	If his period of stay in India during the current year is 182 days or more	•  If the period of stay in India is 729 days or less in past 7 years; or   •  such individual is a non-resident in 9 out of 10 preceding years.
Indian Citizen visiting India having income*> Rs. 15 lakhs	If his period of stay in India during the current year is 182 days or more	•  If the period of stay in India is 729 days or less in past 7 years; or   •  such individual is a non-resident in 9 out of 10 preceding years.
	If the period of stay in India is 120 days or more but less than 182 days in current year and 365 days or more in last 4 years	Always deemed to bea not-ordinary resident
	If such individual is not liable to tax in any other country due to his domicile or residence or any other criteria of similar nature	Always deemed to be a not-ordinary resident
Person of Indian Origin visiting Indiahaving income*< Rs. 15 lakhs	If his period of stay in India during the current year is 182 days or more	•  If the period of stay in India is 729 days or less in past 7 years; or   •  such individual is a non-resident in 9 out of 10 preceding years.
Person of Indian Origin visiting India having income*> Rs. 15 lakhs	(a) If his period of stay in India during the current year is 182 days or more	•  If the period of stay in India is 729 days or less in past 7 years; or   •  such individual is a non-resident in 9 out of 10 preceding years.
	(b) If the period of stay in India is 120 days or more but less than 182 days in current year and 365 days or more in last 4 years	Always deemed to be a not-ordinary resident
Indian Citizen, having Income*< Rs. 15 lakhs,leaving India:   (a) As a member of the crew of an Indian ship; or   (b) For the purposes of employment outside India.	If his period of stay in India during the current year is 182 days or more	If the period of stay in India is 729 days or less in past 7 years; orsuch individual is a non-resident in 9 out of 10 preceding years.
Indian Citizen, having income* > 15 lakhs, leaving India:   (a) As a member of the crew of an Indian ship; or   (b) For the purposes of employment outside India.	If his period of stay in India during the current year is 182 days or more	•  If the period of stay in India is 729 days or less in past 7 years; or   •  If such individual is non-resident in 9 out of 10 preceding years.
	If such individual is not liable to tax in any other country due to his domicile or residence or any other criteria of similar nature	Always deemed as not-ordinary resident
Any other Individual	(a) If his period of stay in India during the current year is 182 days or more; or   (b) If his period of stay in India is 60 days or more but less than 182 days in the current year and 365 days or more in the last 4 years.	If the period of stay in India is 729 days or less in past 7 years; or such individual is a non-resident in 9 out of 10 preceding years.
Note 1: An individual is consideredas a non-resident in India if any of the conditions required to be fulfilled to become a resident are not satisfied. Note 2: Any other Indian citizen (not covered above) having Income*more than Rs. 15 lakhs shall be deemed as a resident, if he is not liable to tax in any other country due to his domicile or residence or any other criteria of similar nature. *Income means total income, other than the income from foreign sources.

 

Person other than an Individual	Resident	Non-Resident
HUF	If control and management of HUF are in India. A resident HUF is further classified into 'Resident but not Ordinarily Resident' if:   a) The period of stay of Karta in India is 729 days or less in last 7 years; or   b) Karta is 'non-resident' in 9 out of 10 preceding years.	If control and management of HUF is situated wholly outside India
Indian Co.	Always treated as a resident in India	-
Foreign Co.	If the Place of Effective Management (POEM) of Foreign Co. is in India	If the Place of Effective Management (POEM) of Foreign Co. is outside India
Firm/Association of Persons (AOP)/ Body of Individuals (BOI) etc.	If control and management of the assessee is situated in India	If control and management of the assessee is situated wholly outside India

 

 

[As amended by Finance Act, 2024]