Basic conditions to identify Residential status

Residential status

An aseesee can be classified under the following three residential statuses under income tax act.

1.  Resident and ordinary resident (R and OR)
2.  Resident but not ordinary resident (R but NOR)
3.  Nonresident (NR)

Basic conditions on which the residential status of an Assessee can be determine

When an individual will be considered as a resident of India if he satisfies the basic conditions under section 6(1)

1)    An individual should be in India during the current previous year for 182 days or more

                                                                                                        OR 

2)    An individual should be in India for 365 days or more during the 4 preceding previous year

                                                                                                    AND

He should be in India for 60days or more in current previous year.

                                                                                 Exceptions to an individuals

1. An Indian citizen or of Indian origin who lives abroad and comes to India on a visit
2. An Indian citizen who leaves India for employment opportunity outside India

For these individuals only the 1^st basic condition of section 6(1) should be checked

When a resident will be considered as ordinary resident of India

Resident will be considered as a ordinary resident of India if satisfied the condition under section 6(6)

1. He should be a resident of India in 2 out of 10 preceding previous year

                                                                                                      AND

 2. He should be in India for 730 days or more during the 7 preceding previous year

The person who not follows these conditions called as non resident