{"id":528,"date":"2013-08-14T19:50:25","date_gmt":"2013-08-14T19:50:25","guid":{"rendered":"http:\/\/www.club4ca.com\/formats\/?p=528"},"modified":"2013-08-14T19:50:25","modified_gmt":"2013-08-14T19:50:25","slug":"the-residential-status-of-an-individual-for-income-tax-purposes-depends-on-the-physical-stay-of-the-individual-in-india","status":"publish","type":"post","link":"https:\/\/www.club4ca.com\/formats\/income-tax\/the-residential-status-of-an-individual-for-income-tax-purposes-depends-on-the-physical-stay-of-the-individual-in-india\/","title":{"rendered":"The Residential Status of an individual for income-tax purposes depends on the physical stay of the individual in India"},"content":{"rendered":"<p><strong>The\u00a0Income\u00a0Tax Act<\/strong>, 1961 governs the taxation of\u00a0income\u00a0in India.\u00a0Income\u00a0tax is charged on\u00a0total income<br \/>\nfor a given\u00a0financial year. The\u00a0financial year\u00a0runs from 1 April to 31 March of the following year.<\/p>\n<p><b>Residential status<\/b><\/p>\n<p>The <strong>residential status<\/strong> of an individual for\u00a0income-tax purposes depends on the physical stay of the individual<br \/>\nin India. Based on the period of stay in India in a given\u00a0financial year, an individual may be classified as:<\/p>\n<ul>\n<li>\u00a0Resident<\/li>\n<li>Not ordinarily resident (NOR)<\/li>\n<li>Non-resident (NR).<\/li>\n<\/ul>\n<p>Tests of residence under the act<\/p>\n<p><a href=\"https:\/\/www.club4ca.com\/formats\/wp-content\/uploads\/2013\/08\/status.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-551 aligncenter\" alt=\"status\" src=\"https:\/\/www.club4ca.com\/formats\/wp-content\/uploads\/2013\/08\/status-300x180.jpg\" width=\"383\" height=\"265\" \/><\/a><br \/>\nA. An individual is a resident in India\u00a0if he stays in India for:<\/p>\n<ul>\n<li>At least 182 days during a\u00a0financial year<\/li>\n<li>At least 60 days during a financial year and 365 days or more during the 4 years preceding that fiscal\u00a0year.<\/li>\n<\/ul>\n<p>Exceptions\u00a0to the above:<\/p>\n<ul>\n<li>The 60-day period mentioned above will be substituted for 182 days in case of the following\u00a0persons:-<\/li>\n<li>\u00a0A citizen of India who leaves the country as a\u00a0crew member\u00a0of an Indian ship or for the purposes\u00a0of employment outside India<\/li>\n<li>A Citizen of India or PIO who visits India in any previous year.<\/li>\n<\/ul>\n<p>B.\u00a0An individual is an NOR in India\u00a0if:<\/p>\n<ul>\n<li>He is an NR in India in 9 of 10 financial years preceding the relevant fiscal year<\/li>\n<li>His stay in the 7 years preceding the relevant\u00a0financial year\u00a0is in the aggregate 729 days or less.<\/li>\n<\/ul>\n<p>C.\u00a0An individual is an NR in India if:<\/p>\n<ul>\n<li>\u00a0He does not satisfy any of the two conditions mentioned in A above.<\/li>\n<\/ul>\n<p><b>NRI<\/b><br \/>\nAn NRI is defined as a citizen of India or a PIO who is not a resident.<\/p>\n<p><b>PIO<\/b><br \/>\nA person shall be deemed to be of Indian origin if he or either of his parents or grandparents were born in<br \/>\nundivided India.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The\u00a0Income\u00a0Tax Act, 1961 governs the taxation of\u00a0income\u00a0in India.\u00a0Income\u00a0tax is charged on\u00a0total income for a given\u00a0financial year. The\u00a0financial year\u00a0runs from 1 April to 31 March of the following year. Residential status The residential status of an individual for\u00a0income-tax purposes depends on the physical stay of the individual in India. Based on the period of stay in India in a given\u00a0financial year, an individual may be classified as: \u00a0Resident Not ordinarily resident (NOR) Non-resident (NR). Tests of residence under the act A. An individual is a resident in India\u00a0if he stays in India for: At least 182 days during a\u00a0financial year At<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[930,178],"class_list":["post-528","post","type-post","status-publish","format-standard","hentry","category-income-tax","tag-income-tax","tag-residential-status"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Residential Status of an individual for income-tax purposes depends on the physical stay of the individual in India - CA CLUB<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.club4ca.com\/formats\/income-tax\/the-residential-status-of-an-individual-for-income-tax-purposes-depends-on-the-physical-stay-of-the-individual-in-india\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Residential Status of an individual for income-tax purposes depends on the physical stay of the individual in India - CA CLUB\" \/>\n<meta property=\"og:description\" content=\"The\u00a0Income\u00a0Tax Act, 1961 governs the taxation of\u00a0income\u00a0in India.\u00a0Income\u00a0tax is charged on\u00a0total income for a given\u00a0financial year. 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