This document discusses the determination of residential status of assessees in India for tax purposes. It defines resident and non-resident individuals and the rules used to determine their status. An individual is a resident if they were in India for 182 days or more in the previous year, or were in India for at least 365 days in the last 4 years and 60 days in the previous year. To be ordinarily resident, they must also meet additional criteria of being resident in 2 of the last 10 years and being in India for at least 730 days in the last 7 years. Anyone who does not meet the basic or additional criteria is considered a non-resident.

1. TOPIC: DETERMINATION OF
RESIDENTIAL STATUS OF ASSESSEE
PRESENTED BY,
GINO P GEORGE

2. RESIDENCE OF ASSESSEES
 THE SCOPE OF TOTAL INCOME OF THE ASSESSEE IS
DETERMINED WITH REFERENCE TO HIS RESIDENCE
IN INDIA IN THE PREVIOUS YEAR (SEC.5)
 RESIDENCE AND CITIZENSHIP ARE TWO DIFFERENT
THINGS.
 THE INCIDENCE OF TAX HAS NOTHING TO DO
WITH CITIZENSHIP
 AN INDIAN MAY BE NON RESIDENT AND A
FOREIGNER MAY BE RESIDENT IN INDIA

3. TYPES OF RESIDENTS
TYPES OF RESIDENTS
RESIDENT NON RESIDENT
ORDINARILY RESIDENT NOT ORDINARILY
RESIDENT

4. RULES FOR DETERMINING
RESIDENTIAL STATUS OF
INDIVIDUALS
1.RESIDENT ( ORDINARILY RESIDENT)
AN INDIVIDUAL IS SAID TO BE RESIDENT IN INDIA IN
ANY PREVIOUS YEAR IF HE SATISFIES ANY ONE OF THE
FOLLOWING BASIC CONDITIONS (SEC.6(1))
BASIC CONDITIONS
(a) HE IS IN INDIA IN THE PREVIOUS YEAR FOR A
PERIOD OF 182 DAYS OR MORE, OR
(b) HE HAS BEEN IN INDIA FOR AT LEAST 365 DAYS
DURING THE 4 YEARS PRECEDING THE PREVIOUS YEARS
AND IS IN INDIA FOR AT LEAST 60 DAYS DURING THE
PREVIOUS YEAR.

5. ADDITIONAL CONDITIONS
 IN ORDER THAT AN INDIVIDUAL MAY BECOME
ORDINARILY RESIDENT IN INDIA, HE IS TO SATISFY
BOTH OF THE FOLLOWING CONDITIONS BESIDES
SATSFYING ANY ONE OF THE ABOVE MENTIONED
BASIC CONDITIONS:
ADDITIONAL CONDITIONS
(a) HE HAS BEEN RESIDENT IN INDIA IN AT LEAST 2
OUT OF 10 PREVIOUS YEARS PRECEDING THE RELEVANT
PREVIOUS YEAR.
(b) HE HAS BEEN IN INDIA FOR AT LEAST 730 DAYS IN
ALL DURING THE 7 PREVIOUS YEARS PRECEDING THE
RELEVANT PREVIOUS YEAR

6. 2.NOT ORDINARILY RESIDENT
IF AN INDIVIDUAL SATISFIES ANY ONE OF THE BASIC
CONDITIONS BUT DOES NOT SATISFY THE AFORESAID
2 ADDITIONAL CONDITIONS, HE IS SAID TO BE NOT
ORDINARILY RESIDENT (sec.6(6)a)

7. 3.NON RESIDENT
IF AN INDIVIDAUAL SATISFIES NONE OF THE
AFORESAID BASIC CONDITIONS, HE IS SAID TO BE NON
RESIDENT

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