Residential status under companies act, 2013

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Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2015 If residential status under co.s act, 2013 is to be calculated as per FEMA also..besides Income tax act?
concept of 182 days only will be considered or concept of 60days will also be taken into account?

Amol S Joglekar

Amol S Joglekar (Expert)
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05 June 2015 FEMA has a contention which says if the person intends to stay abroad for a longer period of time. It is not DAYs specific like Income Tax Act

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2015 You mean to say FEMA will not be considered? and what about the other 60days concept?

Amol S Joglekar

Amol S Joglekar (Expert)
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05 June 2015 which 60 days concept you are talking? Income tax act or FEMA or companies act 2013?

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2015 the second condition under income tax act, 1961 i.e. 60days in a year or 365 days in previous four years. If this is also considered apart from 182 days in previous year?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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21 July 2025 Great question! Here’s a detailed clarification on residential status under Companies Act, 2013 and how it relates to FEMA and Income Tax Act concepts:

1. Residential Status under Companies Act, 2013
As per Section 2(87) of the Companies Act, 2013, a “resident” director means a director who has stayed in India for total 182 days or more during the financial year.

So, only the 182 days rule applies under Companies Act for determining residential status of directors.

The Companies Act does not incorporate the additional criteria of 60 days + 365 days in last 4 years like in the Income Tax Act.

2. Residential Status under Income Tax Act, 1961
The Income Tax Act defines a resident based on either:

182 days or more in India during the previous year, or

60 days or more in the previous year and 365 days or more in the 4 years preceding the previous year.

The 60 days condition is mainly relevant for Indian citizens or persons of Indian origin coming from abroad.

3. Residential Status under FEMA
FEMA (Foreign Exchange Management Act) generally does not have a strict day-count formula like the Income Tax Act or Companies Act.

Instead, FEMA focuses on the intention of staying abroad and the nature of residency (i.e., whether the person is an NRI or resident based on their intent and duration).

So FEMA can be more flexible and subjective, based on facts and circumstances rather than fixed days.

Summary Table:
Act/Rule Residential Criteria Notes
Companies Act, 2013 Director staying 182 days or more in FY Only 182 days considered
Income Tax Act 182 days OR 60 days + 365 days (4 previous yrs) Both conditions apply
FEMA Based on intention and duration (No fixed days) More flexible, fact-based

So to answer your question:
For Companies Act, 2013, only the 182 days rule is relevant for determining if a director is a resident.

The 60 days + 365 days condition (Income Tax Act) is not applicable for Companies Act purposes.

For FEMA, the concept is different and based on the individual’s intention and other factors, not strictly on days.

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