Bank of Baroda - India's International Bank

RESIDENTIAL STATUS AND TAXATION

NON RESIDENT

If an Individual who satisfies both the understated conditions of section 6 of the Income-tax Act, then he becomes a Non-Resident.

Condition

 

Status

1. The person is not in India for 182 days or more during the relevant previous year.

>> 

If yes, then the person is a non-resident.
(Subject to condition “2”.)

2. The person is not in India for 60 days or more during the previous year and the person is not in India for 365 days or more during the 4 years prior to the previous year.

>> 

If yes, then the person is a non-resident.
(Subject to exceptions mentioned below)



*Exceptions
The requirement of stay in India for 60 days as required in condition 2 is extended to 182 days to be considered as a Resident in India, in the following cases:

  • If an NRI, who is citizen of India or Person of Indian Origin, who is on visit to India or
  • If a person, who is citizen of India, leaves India for employment outside India or as a member of the crew of an Indian ship.
In other words, the above categorized persons are non-resident if they satisfy “condition 1” alone.

RESIDENT BUT NOT ORDINARILY RESIDENT (RNOR)

A Non Resident who has returned to India for good is covered under the provisions of section 6(6) of the Income-tax Act. He is given a special status of RESIDENT BUT NOT ORDINARILY RESIDENT (RNOR) if he satisfies any one of the following conditions:

Condition

 

Status

1. The person is non-resident, as per the above provisions, for at least 9 out of 10 previous years prior to the previous year under consideration.

>> 

If yes, the person is RNOR

2. The person’s stay in India during the 7 previous year prior to the previous year under consideration should be 729 days or less

>> 

If yes, the person is RNOR


Note:
A person who is returning to India after 9 years of stay outside India (and who was non-resident for each of the 9 years under the Income Tax Act, 1961), shall remain RNOR for the period of two years only.



*Exceptions

  • The requirement of stay in India for 60 days as required in condition 2 is extended to 182 days to be considered as a Resident in India, in the following cases: ·
    • If an NRI, who is citizen of India or Person of Indian Origin, who is on visit to India or
    • ·
    • If a person, who is citizen of India, leaves India for employment outside India or as a member of the crew of an Indian ship.



Close this window.