What type of resident

A person is Resident and Ordinary Resident (ROR)

if

He is Resident for atleast 2 years in last 10 years

And

Stays in India for 730 Days in Last 7 years

#### How to solve questions

Step1  Determine whether Resident or Non Resident

Step2 If resident then Whether ordinary or Not ordinary

QUESTIONS

Q1

State whether following are Resident or Non Resident

(a) Mr A  who lives in India by birth get job in USA and leaves India on 1 May 2014

-a-

For a person who leaves India for employment, Only option 1 is available

i.e.

He should stay in India for 182 days or more during the previous year

But he stayed for only 31 days so he is Non Resident.

-ea-

( b)  Suppose he left on 1 Dec 2014 for job

-a-

His stay in India from 1 April 2014 to 1 December 2014 is 8 months i.e.>182 days

Since he stayed in India for more than 182 days, he is a resident.

Determining ROR/RNOR

Since he stays in India by birth, he satisfies conditions

Resident for 2 years in Last 10 year

+

Stayed in India for  730 Days in last 7 years

So he is

Ordinary Resident

-ea-

Q2

Suppose Mr B went on world tour on 14 April for 1 year

-a-.

Since he went abroad on tour and (not for employment)

He has both the options.

Option 1 Stays in India for 182 days or more

This condition not fulfilled as he stayed in India for only 31 days

Option 2

Stay in India for 60 Days in current year + 365 Days in last 4 years

Since he did not stay in current year for 31 days ,this condition also not fulfilled.

So both condition not fulfilled hence he is Non Resident.

Since he is a non-resident, there is no need to determine whether he is ROR or RNOR

-ea-

Q3

Suppose B went on word tour on 1 June for 1 year.

-a-

Since he went abroad on tour and (not for employment)

He has both the options.

Option 1

Stays in India for 182 days or more

This condition not fulfilled as he stayed in India for only 31 days

Option 2

Stay in India for 60 Days in current year + 365 Days in last 4 years

Stay in India = 30 + 31 + 1 = 62 days i.e. More than 60 days in Current year

Assuming he stayed in India for 365 Days in last 4 years

Hence. Option 2 Satisfied He is Resident

Determining ROR/RNOR

Since he stays in India by birth ,he satisfies conditions

Resident for 2 years in   Last 10 year

+

Stayed in India for  730 Days in last 7 years

So he is

Ordinary Resident

-ea-

Q4  Mr C,  A  Cricketer comes to India every year for 70 days to play IPL Cricket since 2008

Whether Resident or Non Resident ?

-a-.

Both options available to him

Option 1

Stays in India for 182 days or more

This condition not fulfilled as he stayed in India for only 70 days

Option 2

Stay in India for 60 Days in current year + 365 Days in last 4 years

Stay in India = 70 days i.e. More than 60 days in Current year

Days stayed in India in last 4 years =70*4=280

Since he did not stay for 365 days, Option 2 is not satisfied. He is Non Resident

Because he is Non Resident, no need to further check for ROR/RNOR.

-ea-

Q5

Suppose Mr D, an American citizen come to India for visit every year for 100 days since last 10 years

-a-

Since he is American citizen Both options available

Option 1

Stays in India for 182 days or more

This condition not fulfilled as he stayed in India for only 100 days

Option 2

Stay in India for 60 Days in current year + 365 Days in last 4 years

Stay in India = 100 days i.e. More than 60 days in Current year

Days stayed in India in last 4 years =100*4=400 days

Hence Option 2 fulfilled,he is a Resident

Check for ROR/RNOR

He did not stay in India for 730 days in last 7 years,

(100*7=700 days)

hence he is RNOR(Resident but not ordinary resident)

-ea-

Q6

Solve last question assuming he is a Pakistani Citizen who come to visit India every year for 100 days since last 10 year

-a-

Since he is  Pakistani Citizen,he is a person of Indian Origin as his parents were born in Undivided India

Only Option 1 is available as he is PIO

[Parents born in undivided India]

He stayed in India for less than 182 Days So he is Non Resident

Since he is a non-resident, there is no need to determine whether he is ROR or RNOR

-ea-

1. Income Tax
2. Residential Status

About the Author

CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .