The taxability of an income depends on the person's residential status. To know the residential status of an assessee within the confines of this law is very important, because being a Non-Resident under other laws does not automatically make one a Non-Resident under this act too. And based on the residential status, the assessees could be classified as below:

Basic Conditions

a) Should have been in India for more than 182 days during the year

OR

b) Presence in India of more than 60 days during the year AND more than 365 days during the previous four years.

c) This period is extended to 182 days in case of persons leaving India during the year for employment in foreign countries.

Additional Conditions

a)The person should satisfy one of the above two basic conditions in nine out of ten preceding years

AND

b)The person should be present in India for atleast 730 days in the last seven years.


"Resident" but not ordinarily a Resident

An Individual who satisfies one or more of the two Basic Conditions (above), but does not satisfy the two additional conditions is treated as a Resident but not ordinarily a resident.

Non-Resident

A person who does not satisfy any of the basic conditions becomes a Non-Resident.

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