Definition of Resident for Individual
An individual is considered a resident if
Option 1
He stays in India for
182 days or more during the previous year (Current Financial Year)
Or
Option 2
He stays in India for 60 Days in 'previous year' + Total 365 days in last 4 years, i.e., preceding the 'previous year' (Last 4 years)
Note :-
Option 2 not for the following
- Citizen of India who goes outside India for Employment
- Citizen of India Or PIO - who comes into India for visit.
In case of these people, only Option 1 only to be considered and not Option 2
PIO means Persons of Indian Origin
i.e Individual whose parents or grandparents were born in undivided India. Even Citizens of Pakistan/Bangladesh covered here as they or their parents were born in undivided India
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
View answer
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.
( b) Suppose he left on 1 Dec 2014 for job
View answer
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.
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.
Q3
Suppose B went on word tour on 1 June for 1 year.
View answer
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 is Satisfied, therefore he is 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, therefore he is Non Resident
Q5
Suppose Mr D, an American citizen come to India for visit every year for 100 days since last 10 years
View answer
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
-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
View answer
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
NEW AMENDMENT
In case of an Individual,
being a citizen of India
and a member of the crew of a foreign bound ship leaving India,
the period or periods of stay in India shall, in respect of such voyage, be determined
in the prescribed manner and subject to the prescribed conditions by CBDT
Explanation 2 has been inserted to section 6(1)
INDIVIDUAL+ CITIZEN OF INDIA+ MEMBER OF CREW OF SHIP+ SHIP GOING FOR FOREIGN TRIP----->
Period of Stay in India determined by CBDT
CBDT has issued Notification 70/2015 in this behalf
Period of stay in India in this case shall not include period
Starting from Date of Joining the ship
To
Date of Signing off from ship
As
Entered in Continuous Discharge Certificate
In resepct of eligible voyage
(Crew member has to enter date of joining voyage and date of entering voyage in this Continuous Discharge Certificate)
Here ,
Eligible voyage means
voyage starting from any port in India, has as its destination any port outside India
or
voyage starting from any port outside India, has as its destination any port in India.