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An Indian Citizen who stays abroad for (a) employment/ carrying on business or (b) vacation outside India or (c) stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident.
Persons posted in U.N. organizations and officials deputed abroad by Central/ State Government and Public Sector Undertakings on temporary assignments are also treated as non-resident.
Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens.
A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of Indian Origin, if,
A spouse( not being a citizen of Pakistan or Bangladesh ) of an Indian citizen /Indian origin is also treated as a person of Indian origin provided the Bank accounts are opened or investments in shares/securities in India are made by such persons jointly with their NRI spouses.
A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri lanka or Nepal), is deemed to be of Indian origin if,
(i) He held an Indian passport at any time, OR
(ii) He or his father or paternal grand-father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
An individual is resident if any of the following conditions are satisfied:
(i) He stayed in India for 182 days or more during the previous year, or
(ii) In India for 365 days or more during the four preceding years and stays in India for at least 60 days 9 182 days in case of an Indian citizen or a person of Indian Origin coming on a visit to India or 182 days.
In case of an Indian citizen going abroad for employment) during the previous year.
Stay in India for the above criteria may be continuous or intermittent.
A person is non-resident if he is not resident in India.
An individual or an HUF is treated to be not ordinarily resident in India in any previous year if he or the manager of HUF:-
Thus according to condition in clause (a) a newcomer to India would remain not ordinarily resident in India for the first 9 years of his stay in India.
Similarly, in case where a person who is resident in India goes abroad and ceases to be resident in India for at least 2 years, he would upon his return, be treated as, not ordinarily resident for the next 9 years.
In case of Indian citizen who leaves Indian during previous year for the purpose of employment :-
Such a person is resident in India if he satisfies the following conditions:-
Such person would be non-resident if he does not satisfy condition (a) stated above.
The residential status of such a person is to be determined after looking into the following
He would be resident in India if he satisfies all the conditions (a) to (c) above.
The person would be resident but not ordinarily resident if he satisfies the condition at (a) but does not satisfy any or either of the conditions at (b) and (c) above.
Person would be non-resident if he does not satisfy the condition at a) above.
Thus condition (a) is of fundamental importance and must be satisfied to be resident in India. Conditions ( b) and (c) only help to qualify that resident status.
For individuals other than those included in category ( I ) or (ii), we have to look into the following four conditions to determine the residential status:-
A person would be resident in India if he satisfies any of the conditions at (a) or (b) and both the conditions at (c) and (d) i.e. he either satisfies conditions (a), (c) and (d) or (b), (c) and (d).
Person would be resident but not ordinarily resident if he satisfies either of the conditions at (a) or (b)and does not satisfy both or either of the conditions at (c) and (d).
In other words, if a person satisfies condition (a) or (b) only but does not satisfy either (c) or (d) or both, he would be treated as resident but not ordinarily resident in India.
If a person satisfies neither of the conditions (a) or (b), he is non-resident.
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