Who is a ‘resident’ for tax purposes? (Section 6)

1. INDIVIDUAL

1. An individual is considered as a ‘resident’ if he is

1. in India for 182 days or more in a previous year

OR

2. in India for 365 days or more in 4 years immediately preceding a previous year and 60 days or more in a previous year

Exception:

A citizen of India, who leaves India in any year for employment or as a member of the crew of an Indian ship or who is abroad and comes on a visit to India, in the previous year, is treated as a resident in that year, if he has been in India for 182 days or more. The second condition in b) above, is not functional in such cases.

2. An individual is considered as ‘not ordinarily resident’ if he is

1. a non-resident for 9 out of 10 previous years in the immediately preceding previous years
   
   
   
   
   
   
   
   OR
   
   
   
    

2. has been in India for a period of 729 days or less in the seven preceding previous years.

3. An individual is considered as ‘non-resident’ if he does not satisfy either of the conditions mentioned in 1) above.

Note: In case of presence in India for part of a day, in the calculation of days/physical presence, the broken period should be taken on hourly basis (Walkie vs IRC (1952) 1 AER 92. And in case of non-availability of data, the date of arrival and date of departure shall be taken into account for the purpose of calculation of number of days. (Advance Ruling P. No. 7 of 1995).

2. HUF/FIRM/AOP is said to be ‘resident’ in any previous year if it is wholly or partially controlled or managed from India; i.e., it would be a ‘non-resident’ if control or management is wholly outside India.
   
   
   
    

3. COMPANY

Company is said to be ‘resident’ in India in previous year if

• It is an Indian Company OR

• Management and Control is situated wholly in India