Residential Status & Tax Liability

Under Section 6, residential status is determined annually for each previous year based on physical stay in India.

1. Residential Status Categories (Individuals)

• Resident and Ordinarily Resident (ROR): Taxed on their global income (earned in India and abroad).
• Resident but Not Ordinarily Resident (RNOR): Taxed on income received/accrued in India, or income from a business controlled/profession set up in India.
• Non-Resident (NR): Taxed strictly on income received or accrued in India.

2. Rules for Determination (Section 6(1))

An individual is a Resident of India if they satisfy at least one of these two Basic Conditions:

1. Presence in India for 182 days or more during the previous year.
2. Presence in India for 60 days or more during the previous year AND 365 days or more during the 4 years preceding that previous year.