1. The document discusses the rules for determining an individual's residential status for tax purposes in India. 2. It outlines the basic conditions for being considered a resident of India, including staying 182 days or more in the previous year or staying 60 days or more and 365 days in the last 4 years. 3. It then gives an example calculation of residential status for an individual named Mr. X over several previous years, determining that he qualifies as a "resident and ordinarily resident" of India based on meeting the additional conditions.

1. Residential Status
Presentation
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2. Individual – u/s 6(1)
Residential Status
BASIC CONDITIONS :-
1. Residing 182 days or more in india during previous year.
OR
2. A) Residing 60 days or more in india during previous year.
AND
B) Residing 365 days or more in india during 4 preceding previous year.
Exception to sec 6(1) :-
1. Indian citizen leaves india during previous year
a) for employment outside india (for taking/purpose of employment)
OR
b) as a member of shipping crew.
2. Person of indian origin , residing outside, visits india during previous year.
In the above given two cases only 1st
Basic condition is applicable and not the 2nd Basic condition.
Resident of India Non Resident of India
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3. Residential Status – u/s 6(6)
Resident of India Non Resident of India
Resident and Ordinarily Resident Resident but not Ordinarily Resident
ADDITIONAL CONDITION :-
1. Residing 730 days or more in india during 7 preceding previous year.
AND
2. Must be a resident of india in at least 2 out 10 preceding previous year.
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4. Steps to calculate residential status of Individual
1.Introduction
2.Basic Condition
3.Calculation
4.Explanation of 3rd
step
5.New Paragraph
6.Additional Condition
7.Calculation
8.Explanation of 7th
step
9.Conclusion
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5. Note (for Individual):
• In case of Non resident of India ignore step no 5 to step no 8.
• The day of arrival to India and the day of departure from India is to be
considered in India.
• A person may be resident in two (or more) countries at the same time.
• It is not essential that the stay should be at the same place.
• It is equally not necessary that the stay should be continuous.
• The place of stay or the purpose of stay is not material.
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6. Q.1) Mr. X a foreign citizen, comes to India during the previous year 2016-17 and stays
here for 90 days. Determine his residential status for the assessment year 2017-18, after
considering his stay in India in past years.
Pr. Yr No. of days
2002-03 88
2003-04 310
2004-05 12
2005-06 6
2006-07 68
2007-08 181
2008-09 365
Pr. Yr No. of days
2009-10 18
2010-11 355
2011-12 307
2012-13 180
2013-14 72
2014-15 14
2015-16 125
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7. Ans:
1.Introduction
Mr. X is a foreign citizen, hence exception to section 6(1) is not applicable to him.
Therefore to become resident of india he can satisfy any one of the following given two basic
conditions.
2.Basic Conditions
a.Residing 182 days or more in india during previous year OR
b.Residing 60 days or more in india during previous year AND
Residing 365 days or more in india during 4 preceding previous year
3.Calculation
PY 2016-17
No of days in india = 90 (less than 182 days)
PPY No of days in India
2015-16 125
2014-15 14
2013-14 72
2012-13 180
Total 391
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8. 4. Explanation
Mr. X was in india for only 90 days (which is more than 60 days) during the previous
year 2016-17 and 391 days (which is more than 365 days) during 4 preceding
previous year. As he satisfies both the part of 2nd
basic condition, he became resident
of india.
5. New Paragraph
As he becomes resident of india now further we have analyse whether he is resident
and ordinarily resident or resident but not ordinarily resident. To become resident and
ordinarily resident he has to satisfy the following given 2 additional conditions.
6. Additional Conditions
a. Residing 730 days or more in india during 7 preceding previous year AND
b. Must be a resident of india in at least 2 / 10 preceding previous year.
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9. 7. Calculation
PPY No of days stay in india
2015-16 125
2014-15 14
2013-14 72
2012-13 180
2011-12 307
2010-11 355
2009-10 18
1,071
2008-09 365
2007-08 181
2006-07 68
Residential Status
RI
NRI
RI
RI
RI
RI
NRI
RI
RI
RI
8. Explanation
Mr. X was in india for 1,071 days(which is more than 730 days) during 7 preceding previous year and
was resident of india for 8/10 preceding previous year. Thus he satisfies both the additional condition of
730 days or more and 2/10.
9. Conclusion
Mr. X is resident and Ordinarily resident of india (R&OR)
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10. Hindu Undivided Family – u/s 6(2)
Residential status
Control and Management
Fully or Partly in India Fully outside India
Resident of India
Ordinary Status
Karta
Resident and Ordinarily Resident – 730/7 & 2/10
Resident but not Ordinarily Resident – 729/7 & 1/10
Non Resident of India
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11. Once Resident of India
always Resident &
Ordinarily Resident
Company – u/s 6(3)
Residential Status
Registered in India Registered outside India
Indian Company
Always Resident of India
Once Resident of India
always Resident &
Ordinarily Resident
Foreign Company
Control & Management
Fully in India Fully or Partly Outside India
Always Resident of India Non Resident of India
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12. Firm,Association of person/Body of Individual,Local Authority,Artificial
Juridical Person u/s 6(4)
Residential status
Control & management
Fully or partly In India
Resident of India
Resident & Ordinarily Resident
Fully outside India
Non Resident of India
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13. Thank You!
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