{"id":7958,"date":"2024-09-27T14:56:56","date_gmt":"2024-09-27T14:56:56","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=7958"},"modified":"2026-01-24T18:25:59","modified_gmt":"2026-01-24T18:25:59","slug":"residential-status-u-s-6","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/residential-status-u-s-6\/","title":{"rendered":"Residential Status U\/s \u00a06 of the Income Tax Act Act in short"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6012\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/06\/Residential-status-of-Individuals-Section-6.jpg\" alt=\"Residential-status-of-Individuals-Section-6\" width=\"1092\" height=\"1197\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/06\/Residential-status-of-Individuals-Section-6.jpg 790w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/06\/Residential-status-of-Individuals-Section-6-274x300.jpg 274w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/06\/Residential-status-of-Individuals-Section-6-768x842.jpg 768w\" sizes=\"(max-width: 1092px) 100vw, 1092px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69de9d0d31b03\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69de9d0d31b03\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/residential-status-u-s-6\/#Residential_Status_Us_6_of_the_Income_Tax_Act_Act_in_short\" title=\"Residential Status U\/s \u00a06 of the Income Tax Act Act in short\">Residential Status U\/s \u00a06 of the Income Tax Act Act in short<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/residential-status-u-s-6\/#Classification_of_Taxable_Persons\" title=\"Classification of Taxable Persons:\">Classification of Taxable Persons:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/residential-status-u-s-6\/#Amendments_Made_in_Finance_Act_2020\" title=\"Amendments Made in Finance Act 2020: \u00a0\">Amendments Made in Finance Act 2020: \u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/residential-status-u-s-6\/#Residential_Status_of_Other_Entities\" title=\"Residential Status of Other Entities:\u00a0\">Residential Status of Other Entities:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/residential-status-u-s-6\/#Key_Points_on_Residential_Status_Under_Section_6_of_the_Income_Tax_Act\" title=\"Key Points on Residential Status Under Section 6 of the Income Tax Act\">Key Points on Residential Status Under Section 6 of the Income Tax Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/residential-status-u-s-6\/#Important_Terminologies_relation_to_Residential_Status_in_income_tax_act\" title=\"Important Terminologies relation to Residential Status in income tax act :\u00a0\">Important Terminologies relation to Residential Status in income tax act :\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/residential-status-u-s-6\/#FAQs_on_Residential_Status_Under_Section_6_of_the_Income_Tax_Act\" title=\"FAQs on Residential Status Under Section 6 of the Income Tax Act\">FAQs on Residential Status Under Section 6 of the Income Tax Act<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Residential_Status_Us_6_of_the_Income_Tax_Act_Act_in_short\"><\/span><span style=\"color: #000080;\"><strong><em>Residential Status U\/s \u00a06 of the Income Tax Act <\/em><\/strong><strong><em>Act in short<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><em>The taxability of an individual in India is determined by their residential status for a specific financial year. An Indian citizen may or may not be a resident of India based on specific criteria.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Classification_of_Taxable_Persons\"><\/span><span style=\"color: #000080;\"><strong><em>Classification of Taxable Persons:<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6591\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/residencial-status-1.jpg\" alt=\"residential status income tax.\" width=\"1522\" height=\"941\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/residencial-status-1.jpg 1522w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/residencial-status-1-300x185.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/residencial-status-1-1024x633.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/residencial-status-1-768x475.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/residencial-status-1-800x495.jpg 800w\" sizes=\"(max-width: 1522px) 100vw, 1522px\" \/><\/p>\n<p style=\"padding-left: 40px;\"><span style=\"color: #000080;\"><strong><em>An individual\u2019s residential status is classified into three categories:<\/em><\/strong><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em>Resident and Ordinarily Resident (ROR)<\/em><\/li>\n<li><em>Resident but Not Ordinarily Resident (RNOR)<\/em><\/li>\n<li><em>Non-Resident (NR)<\/em><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong><em>Resident and Ordinarily Resident (ROR): An individual is considered a resident of India u\/s 6(1) of the Income Tax Act if they satisfy any of the following:<\/em><\/strong><\/span>\n<ul>\n<li><em>Stay in India for 182 days or more in a fiscal year, or<\/em><\/li>\n<li><em>Stay in India for 60 days or more in a fiscal year and 365 days or more in the four years immediately preceding that fiscal year.<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong><em>To be classified as &#8220;ordinarily resident,&#8221; the individual must also meet these additional conditions under Section 6(6):<\/em><\/strong><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em>Spent 730 days or more in India in the seven preceding years.<\/em><\/li>\n<li><em>Has been a resident for at least 2 out of 10 previous years before the current year.<\/em><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong><em>Resident but Not Ordinarily Resident : An individual is classified as RNOR if:<\/em><\/strong><\/span>\n<ul>\n<li><em>They meet the basic residence conditions (as in ROR) but do not satisfy the additional conditions under Section 6(6) regarding 730 days of stay or residency in 2 of the past 10 years.<\/em><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong><em>Non-Resident:<\/em><\/strong><\/span><em> If an individual does not satisfy any of the conditions mentioned under the resident category, they are classified as a non-resident.<\/em><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6015\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/Residential-status-determination..jpg\" alt=\"Residential-status-determination.\" width=\"914\" height=\"687\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/Residential-status-determination..jpg 600w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/Residential-status-determination.-300x226.jpg 300w\" sizes=\"(max-width: 914px) 100vw, 914px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Amendments_Made_in_Finance_Act_2020\"><\/span><span style=\"color: #000080;\"><strong><em>Amendments Made in Finance Act 2020: <\/em><\/strong><em>\u00a0<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"padding-left: 40px;\"><span style=\"color: #000080;\"><strong><em>I : Non-Residents now include individuals of Indian origin who:<\/em><\/strong><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em>Earn income exceeding \u20b915 lakhs from India,<\/em><\/li>\n<li><em>Have stayed in India for less than 120 days,<\/em><\/li>\n<li><em>Do not have their global income taxed in any other country.<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"color: #000080;\"><strong><em>II : RNOR category now includes individuals of Indian origin who:<\/em><\/strong><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em>Stay in India for more than 120 days but less than 182 days,<\/em><\/li>\n<li><em>Do not have their global income taxed in any other country.<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Residential_Status_of_Other_Entities\"><\/span><span style=\"color: #000080;\"><strong><em>Residential Status of Other Entities:\u00a0<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><span style=\"color: #000080;\"><strong><em>Residential Status of a Company: A company is considered a resident of India if:<\/em><\/strong><\/span>\n<ul>\n<li><em>It is an Indian company, or<\/em><\/li>\n<li><em>The place of effective management (PoEM) during the previous year is in India. This refers to the place where key management and commercial decisions are made.<\/em><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong><em>Hindu Undivided Family (HUF):<\/em><\/strong><\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em>Resident HUF: Managed by members residing in India.<\/em><\/li>\n<li><em>RNOR HUF: If the Karta (manager) fulfills the following:<\/em>\n<ol>\n<li><em>Resident for at least 2 out of 10 previous years.<\/em><\/li>\n<li><em>Stay of 730 days or more in the preceding 7 years.<\/em><\/li>\n<\/ol>\n<\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong><em>Firms, LLPs, AOPs, BOIs, Local Authorities, Artificial Juridical Persons:<\/em><\/strong><\/span>\n<ul>\n<li><em>Similar to HUF: Residential status depends on where the management is located.<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><span style=\"color: #000080;\"><strong><em>Additional Notes on Residential Status<\/em><\/strong><\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em>Crew Members: In the case of Indian citizens who are part of a ship&#8217;s crew, the period of stay does not include time spent on an eligible voyage, determined by the Continuous Discharge Certificate.<\/em><\/li>\n<li><em>Foreign Companies: A foreign company can be considered a resident if its effective management is proven to be conducted from India for the preceding year.<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Key_Points_on_Residential_Status_Under_Section_6_of_the_Income_Tax_Act\"><\/span><span style=\"color: #000080;\"><strong><em>Key Points on Residential Status Under Section 6 of the Income Tax Act<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li><span style=\"color: #000080;\"><strong><em>Stay in India:<\/em><\/strong><\/span>\n<ul>\n<li><em>Includes stays in territorial waters of India (12 nautical miles from the coastline).<\/em><\/li>\n<li><em>Stay does not have to be continuous or active.<\/em><\/li>\n<li><em>Both date of arrival and departure are counted in determining days stayed in India.<\/em><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong><em>Citizenship and Residence:<\/em><\/strong><\/span>\n<ul>\n<li><em>Residential status is independent of citizenship, place of birth, or domicile.<\/em><\/li>\n<li><em>An individual can be a resident in more than one country while having only one domicile.<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Important_Terminologies_relation_to_Residential_Status_in_income_tax_act\"><\/span><strong><em><span style=\"color: #000080;\">Important Terminologies relation to Residential Status in income tax act :<\/span>\u00a0<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><em>Income from Foreign Sources: Income earned outside India, excluding income sourced from a business or profession in India.<\/em><\/li>\n<li><em>Non-Resident Indian (NRI): An NRI is an Indian citizen or of Indian origin who is not a resident as per Section 6 of the Act.<\/em><\/li>\n<li><em>Person of Indian Origin (PIO): A person is considered of Indian origin if they, their parents, or grandparents were born in undivided India.<\/em><\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong><em>Taxability Based on Residential Status<\/em><\/strong><\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6860\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2015\/05\/Re-status-.jpg\" alt=\"residential status of a person\" width=\"1080\" height=\"1019\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2015\/05\/Re-status-.jpg 1080w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2015\/05\/Re-status--300x283.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2015\/05\/Re-status--1024x966.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2015\/05\/Re-status--768x725.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2015\/05\/Re-status--800x755.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em>Resident and Ordinarily Resident: Taxable on global income, i.e., income earned both inside and outside India.<\/em><\/li>\n<li><em>Resident but Not Ordinarily Resident: Not required to pay tax on: Income earned and received outside India.<\/em><\/li>\n<li><em>Non-Resident : Taxed only on: Income received in India or sourced from India. And Income earned outside India that has no connection with India is not taxable.<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"FAQs_on_Residential_Status_Under_Section_6_of_the_Income_Tax_Act\"><\/span><span style=\"color: #003366;\"><strong><em>FAQs on Residential Status Under Section 6 of the Income Tax Act<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6827\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/R-Status-.jpg\" alt=\"individual residential status\" width=\"1079\" height=\"1136\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/R-Status-.jpg 1079w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/R-Status--285x300.jpg 285w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/R-Status--973x1024.jpg 973w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/R-Status--768x809.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/R-Status--800x842.jpg 800w\" sizes=\"(max-width: 1079px) 100vw, 1079px\" \/><\/p>\n<ol>\n<li><span style=\"color: #000080;\"><strong><em>When does a person become a resident in India?<\/em><\/strong><\/span>\n<ul>\n<li><em>If the individual stays for 182 days or more in a year, or<\/em><\/li>\n<li><em>60 days in a year and 365 days in the preceding 4 years.<\/em><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong><em>When does a person become a Resident and Ordinarily Resident (ROR)?<\/em><\/strong><\/span>\n<ul>\n<li><em>Resident for 2 years out of the previous 10 years, and<\/em><\/li>\n<li><em>Stayed in India for 730 days or more in the preceding 7 years.<\/em><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong><em>Who is a deemed resident?<\/em><\/strong><\/span>\n<ul>\n<li><em>An Indian citizen with income over \u20b915 lakhs (excluding foreign sources) and not taxable in any other country due to residence or domicile is a deemed resident and will be treated as an RNOR.<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Residential Status U\/s \u00a06 of the Income Tax Act Act in short The taxability of an individual in India is determined by their residential status for a specific financial year. An Indian citizen may or may not be a resident of India based on specific criteria. Classification of Taxable Persons: An individual\u2019s residential status is &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[623],"tags":[352],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/7958"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=7958"}],"version-history":[{"count":3,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/7958\/revisions"}],"predecessor-version":[{"id":9986,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/7958\/revisions\/9986"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=7958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=7958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=7958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}