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Residential Status under Income Tax Act

The status of a person as a resident or non-resident depends on his period of stay in India. The period of stay is counted
in number of days for each financial year beginning from 1st April to 31st March (known as previous year under the Income-tax
Act). The definition is explained in simple terms as under.

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

ConditionStatus
1.He is not in India for 182 days or more during the relevant previous year.If yes, then he is a non-resident. (so check the next condition.)
2.He is not in India for 60 days or more during the previous year and he is not in India for 365 days or more during
the 4 years prior to the previous year.
If yes, then he is a non-resident.

If you are not satisfying any of the above conditions to become non-resident, check whether following assists you to become a non-resident.

Exceptions

The requirement of stay in India as required in condition 2 above shall not be applicable in the following cases: o If an
individual, being an Indian citizen leaving India for the purpose of employment outside India or as a member of the crew
of an Indian ship. o If an individual, being an Indian citizen or person of Indian origin, is on visit to India. In other
words, the above categorized individuals are non-resident if they satisfy condition “1” alone.

However, if the above conditions are not satisfied, then a person becomes a resident.

Resident but not ordinarily Resident (RNOR):

A person is given a special residential status of RNOR, if he is Resident of India in the previous year and satisfies one of the following conditions:

ConditionStatus
1.He is not a resident, as per the above provisions, for at least 9 out of 10 previous years prior to the previous
year under consideration.
If yes, he is RNOR
2.His stay in India during the 7 previous year prior to the previous year under consideration should not be 730
days or more
If yes, he is RNOR

Note: Generally, a person who is returning to India after 9 years or more of stay outside India (and who was non-resident
for each of the 9 years out of 10 years immediately preceding the year of returning to India under the Act) , may remain
RNOR for the period of two years.

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