Quick Summary
Determining whether an individual is aresident or non-resident for Indian tax purposes has become increasingly important as more Indians work, invest and maintain financial interests across countries. A person may spend part of the year in India, work overseas, maintain property or investments in India and still have tax and regulatory obligations in more than one jurisdiction. To help professionals and taxpayers navigate these issues, the Institute of Chartered Accountants of India (ICAI) has
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 011-411-70713
FAQ :
The ICAI Handbook aims to help professionals and taxpayers navigate the complexities of determining residential status for Indian tax purposes and under the Foreign Exchange Management Act (FEMA), particularly for individuals with cross-border financial interests.
The Income-tax Act, 2025, which applies from April 1, 2026, reorganises and renumbers provisions related to residential status, aiming for clearer statutory language and modernised presentation. The Handbook guides readers through these new sections and maps them to the previous law.
The primary test is being present in India for 182 days or more during the tax year. A secondary test involves staying in India for 60 days or more in the current year and 365 days in the four preceding years, with specific exceptions.
Yes, the Handbook highlights that income-tax residency and FEMA residency can differ. An individual might satisfy the day-count tests for Indian tax residency while being considered a person resident outside India under FEMA, based on factors like intention and purpose of stay.
For Indian citizens and persons of Indian origin visiting India, if their total income (excluding foreign sources) exceeds ₹15 lakh, the 60-day residency threshold can effectively change to 120 days, provided other conditions are met. This requires careful examination of income sources.
Yes, the Handbook includes an overview of residential laws in major foreign jurisdictions such as the UK, US, UAE, Singapore, Canada, Australia, and the Netherlands, along with relevant Double Taxation Avoidance Agreement (DTAA) considerations.
CAclubindia
