{"id":3843,"date":"2018-03-14T10:48:36","date_gmt":"2018-03-14T05:18:36","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=3843"},"modified":"2024-01-22T23:49:39","modified_gmt":"2024-01-22T18:19:39","slug":"residential-status-under-income-tax","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/residential-status-under-income-tax\/","title":{"rendered":"Residential Status under the Income Tax Act"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e27eba5e9ca\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e27eba5e9ca\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/residential-status-under-income-tax\/#RESIDENTIAL_STATUS_UNDER_INCOME_TAX_ACT\" title=\"RESIDENTIAL STATUS UNDER INCOME TAX ACT\u00a0\">RESIDENTIAL STATUS UNDER INCOME TAX ACT\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/residential-status-under-income-tax\/#RESIDENTIAL_STATUS_Of_INDIVIDUAL\" title=\"RESIDENTIAL STATUS Of INDIVIDUAL\">RESIDENTIAL STATUS Of INDIVIDUAL<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/residential-status-under-income-tax\/#RESIDENT_AND_ORDINARILY_RESIDENT_OR_RESIDENT_BUT_NOT_ORDINARILY_RESIDENT\" title=\"RESIDENT AND ORDINARILY RESIDENT OR RESIDENT BUT NOT ORDINARILY RESIDENT\">RESIDENT AND ORDINARILY RESIDENT OR RESIDENT BUT NOT ORDINARILY RESIDENT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/residential-status-under-income-tax\/#RESIDENTIAL_STATUS_OF_HUF\" title=\"RESIDENTIAL STATUS OF HUF\">RESIDENTIAL STATUS OF HUF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/residential-status-under-income-tax\/#Residential_status_of_a_company\" title=\"Residential status of a company \">Residential status of a company <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/residential-status-under-income-tax\/#Other_person\" title=\"Other person\">Other person<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/residential-status-under-income-tax\/#Nature_of_income_its_Taxability_income_to_be_taxed_in_India\" title=\"Nature of income &amp; its Taxability income to be taxed in India\">Nature of income &amp; its Taxability income to be taxed in India<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"RESIDENTIAL_STATUS_UNDER_INCOME_TAX_ACT\"><\/span><a href=\"https:\/\/carajput.com\/archives\/residential-status-and-nature-of-income-and-income-to-be-taxed-in.pdf\"><span style=\"color: #ff0000;\"><strong>RESIDENTIAL STATUS UNDER INCOME TAX ACT\u00a0<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-26083\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-1.jpg\" alt=\"residential status income tax\" width=\"1522\" height=\"941\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-1.jpg 1522w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-1-300x185.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-1-1024x633.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-1-768x475.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-1-800x495.jpg 800w\" sizes=\"(max-width: 1522px) 100vw, 1522px\" \/><\/h2>\n<p style=\"text-align: justify;\">Tax incidence on an assessee depends on his residential status. For instance, whether an income, accrued to an individual outside India, is taxable in India depends upon the <a href=\"https:\/\/carajput.com\/blog\/tag\/resident-but-not-ordinary-resident\/\">residential<\/a> status of the individual in India.<\/p>\n<p style=\"text-align: justify;\">Similarly, whether an income earned by a foreign national in India (or outside India) is taxable in India, depends on the residential status of the individual, rather than on his citizenship.<\/p>\n<p style=\"text-align: justify;\">Therefore, the determination of the residential status of a person is very significant.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"RESIDENTIAL_STATUS_Of_INDIVIDUAL\"><\/span><strong>RESIDENTIAL STATUS Of INDIVIDUAL<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/04\/Residential-status-of-Individuals-Section-6.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12172\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/04\/Residential-status-of-Individuals-Section-6.jpg\" alt=\"residential status of an individual section 6\" width=\"902\" height=\"989\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/04\/Residential-status-of-Individuals-Section-6.jpg 790w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/04\/Residential-status-of-Individuals-Section-6-274x300.jpg 274w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/04\/Residential-status-of-Individuals-Section-6-768x842.jpg 768w\" sizes=\"(max-width: 902px) 100vw, 902px\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">An Individual is said to be a resident Indian for the purpose of Income tax if one of the following Basic conditions are satisfied.<\/p>\n<ol style=\"text-align: justify;\">\n<li>An Individual is in India for a period of 182 days in the financial year in which he is getting his salary income or,<\/li>\n<li>An Individual is in India for a period of 60 days or more during financial year in which he gets his salary and 365 days or more during 4 years immediately preceding to that financial year.<\/li>\n<\/ol>\n<p>Read our articles:<\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/blog\/how-to-file-tds-return-online\/\">How to file a return of TDS online<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/learn\/new-tds-deduction-provision-prevent-cash-transactions-of-more-than-1-crore-section-194n.html\">New TDS deduction No cash transactions exceeding 1 Crore -Section 194N<\/a><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">If one of the above conditions are satisfied then he is resident of india as per <a href=\"https:\/\/www.caindelhiindia.com\/blog\/implication-of-cash-transaction-under-income-tax-act\/\">income tax<\/a>.\u00a0Non-Resident in India if he satisfies none of the basic conditions.<\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/Budget-2020-Impact-on-NRIs-7.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12329\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/Budget-2020-Impact-on-NRIs-7.png\" alt=\"\" width=\"944\" height=\"477\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/Budget-2020-Impact-on-NRIs-7.png 944w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/Budget-2020-Impact-on-NRIs-7-300x152.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/Budget-2020-Impact-on-NRIs-7-768x388.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/Budget-2020-Impact-on-NRIs-7-800x404.png 800w\" sizes=\"(max-width: 944px) 100vw, 944px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/Resident-and-Deemed-Resident1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-12334\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/Resident-and-Deemed-Resident1.jpg\" alt=\"\" width=\"838\" height=\"461\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/Resident-and-Deemed-Resident1.jpg 600w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/Resident-and-Deemed-Resident1-300x165.jpg 300w\" sizes=\"(max-width: 838px) 100vw, 838px\" \/><\/a><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"RESIDENT_AND_ORDINARILY_RESIDENT_OR_RESIDENT_BUT_NOT_ORDINARILY_RESIDENT\"><\/span><strong>RESIDENT AND ORDINARILY RESIDENT OR RESIDENT BUT NOT ORDINARILY RESIDENT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">If the Individual fulfils one the following conditions then he said to be resident but not ordinarily resident of India:<\/p>\n<ol style=\"text-align: justify;\">\n<li>An Individual is a non-resident in India for 9 years out of 10 years immediately before relevant financial year.<\/li>\n<li>An Individual is in India for a period less than 729 day during 7 years immediately before the relevant financial year.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">Else, he is considered as a resident and ordinarily resident in India.<\/p>\n<p style=\"text-align: justify;\">These conditions need to be tested every year for every Individual.<\/p>\n<ol style=\"text-align: justify;\">\n<li>When you are calculating the number of days, you have to include the day you left India and the day you arrived in India as part of your total stay in India.<\/li>\n<li>Stay in India includes stay in territorial waters of India i.e. up to 12 nautical miles into the sea.<\/li>\n<li>The stay need not be continuous. All different periods of stay in India have to be added up.<\/li>\n<\/ol>\n<figure id=\"attachment_12332\" aria-describedby=\"caption-attachment-12332\" style=\"width: 852px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/new-nri-criteria.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12332\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/new-nri-criteria.jpg\" alt=\"RESIDENTIAL STATUS UNDER INCOME TAX\" width=\"852\" height=\"506\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/new-nri-criteria.jpg 630w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/new-nri-criteria-300x178.jpg 300w\" sizes=\"(max-width: 852px) 100vw, 852px\" \/><\/a><figcaption id=\"caption-attachment-12332\" class=\"wp-caption-text\">RESIDENTIAL STATUS UNDER INCOME TAX<\/figcaption><\/figure>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"RESIDENTIAL_STATUS_OF_HUF\"><\/span><strong>RESIDENTIAL STATUS OF HUF<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">A <a href=\"https:\/\/carajput.com\/services\/hindu-undivided-family.php\">Hindu undivided family<\/a> is said to be a resident in India if the control and management of its affairs is wholly or partly situated in India.<\/p>\n<p style=\"text-align: justify;\">A Hindu undivided family is a non-resident in India if the control and management of its affairs is wholly situated out of India.<\/p>\n<p style=\"text-align: justify;\">In order to determine whether a Hindu Undivided Family is a resident or a non-resident, the residential status of the karta of the family during the previous year is not relevant<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Residential_status_of_a_company\"><\/span><strong>Residential status of a company <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">An Indian company is always resident in India. A<a href=\"https:\/\/carajput.com\/blog\/tag\/subsidiary-of-a-foreign-company\/\"> foreign company<\/a> is resident in India only if during the previous year, control and management of its affairs is situated wholly in India.<\/p>\n<p style=\"text-align: justify;\">Conversely, a foreign company is treated as non-resident if during the previous year, control and management of its affairs is either is wholly or partly situated out of India.<\/p>\n<p style=\"text-align: justify;\">A company can never be ordinarily or not ordinarily resident in India.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Other_person\"><\/span><strong>Other person<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Every other person is resident in India if control and management of his affairs is, wholly or partly, situated within India during the relevant previous.<\/p>\n<p style=\"text-align: justify;\">On the other hand, every other person is non-resident in India if control and management of its affairs is wholly situated outside India.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Nature_of_income_its_Taxability_income_to_be_taxed_in_India\"><\/span><a href=\"https:\/\/carajput.com\/archives\/residential-status-and-nature-of-income-and-income-to-be-taxed-in.pdf\"><span style=\"color: #000080;\"><strong>Nature of income &amp; its Taxability <\/strong><strong>income to be taxed in India<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-26084\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-2.jpg\" alt=\"residential status income tax.\" width=\"1528\" height=\"1012\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-2.jpg 1528w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-2-300x199.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-2-1024x678.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-2-768x509.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/residencial-status-2-800x530.jpg 800w\" sizes=\"(max-width: 1528px) 100vw, 1528px\" \/><\/p>\n<ol style=\"text-align: justify;\">\n<li><strong> If you are a NR (Non Resident)<\/strong><br \/>\na) You are liable to pay tax &#8220;only&#8221; on the income earned in India.<br \/>\nb) You are &#8220;not taxed&#8221; on any income earned outside India &#8220;nor&#8221; on the income earned outside India out of a business controlled from\u00a0India or a profession set-up in India<strong>2. If you are RNOR (resident but not ordinarily resident)<\/strong><br \/>\na) You are liable to pay tax on the income earned in India on the income earned outside India out of a business controlled from\u00a0India or a profession set-up in India<br \/>\nb) You are &#8220;not taxed&#8221; on any income earned outside India<strong>3. If you are ROR (resident and ordinarily resident)<\/strong><br \/>\nYou are liable to pay tax on all types of incomes i.e.<br \/>\na) what you earn in India<br \/>\nb) earnings outside India out of a business controlled from India or a profession set-up in India,<br \/>\nc) and also on all other incomes earned outside India<\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-25891\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/INCOME-TAX-SLAB-FY-2023-24-AY-2024-25-for-INDIVIDUAL.jpg\" alt=\"INCOME TAX SLAB FY 2023-24 (AY 2024-25) for INDIVIDUAL\" width=\"1114\" height=\"1243\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/INCOME-TAX-SLAB-FY-2023-24-AY-2024-25-for-INDIVIDUAL.jpg 1114w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/INCOME-TAX-SLAB-FY-2023-24-AY-2024-25-for-INDIVIDUAL-269x300.jpg 269w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/INCOME-TAX-SLAB-FY-2023-24-AY-2024-25-for-INDIVIDUAL-918x1024.jpg 918w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/INCOME-TAX-SLAB-FY-2023-24-AY-2024-25-for-INDIVIDUAL-768x857.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/INCOME-TAX-SLAB-FY-2023-24-AY-2024-25-for-INDIVIDUAL-800x893.jpg 800w\" sizes=\"(max-width: 1114px) 100vw, 1114px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>RESIDENTIAL STATUS UNDER INCOME TAX ACT\u00a0 Tax incidence on an assessee depends on his residential status. For instance, whether an income, accrued to an individual outside India, is taxable in India depends upon the residential status of the individual in India. Similarly, whether an income earned by a foreign national in India (or outside India) &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[1893,1223,1102,1101,1099],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3843"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=3843"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3843\/revisions"}],"predecessor-version":[{"id":26087,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3843\/revisions\/26087"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=3843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=3843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=3843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}