Residential Status

Figure out how residential status is determine for individuals. 

Taxability of income in India depends upon the residential status of an individual which is categorized as:

 

  1. Resident and Ordinarily Resident (ROR)

  2. Resident Not Ordinary Resident (RNOR)

  3. Non-Resident (NR)

To read about amendments made by Finance Act, 2020; click here.

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Points to Remember:

  • Residential status applies for one FY. Accordingly, it may be necessary to evaluate residential status on a yearly basis.

  • Residential status as per the Income-tax Act differs from residential status as per FEMA. Accordingly, it may be necessary to evaluate the residential status under both laws.

  • ​In the following cases, a person may be NR if he is present in India for less than 182 days:

    • Being a citizen of India and leaving India as a member of the crew on a ship of the Indian Merchant Navy

    • Being a citizen of India or a Person of Indian Origin leaving India for the purposes of employment outside India

    • Being a citizen of India and a NR, returning to India for the purposes of visit.