Basic conditions in respect of special individuals (Exceptions):
The following individuals are considered to be special individuals:
1. An Indian citizen leaving India during the previous year for employment outside India
(Employment also includes self – employment)
2. An Indian citizen leaving India during the previous year as a member of its crew of an
3. An Indian citizen or a person of Indian origin coming to India during the previous year
for a visit.
In respect of the above special individuals, only basic condition (a) is applicable. Basic
condition (b) is not applicable and this condition becomes non-functional.
Thus, these special individuals shall be treated as resident only if their stay in India is at
least 182 days during the previous year.
If an individual satisfies any one of the basic conditions, he becomes a Resident.
Thereafter, subsequent conditions are to be considered to check whether he is (i) Resident
& ordinarily resident (R & OR) or (ii) Resident but not ordinarily resident (R but NOR).
Resident and Ordinarily Resident in India (R & OR)
Additional conditions [Sec. 6(6)]
In addition to fulfilling one of the above basic conditions, the individual shall have to fulfill
both the following additional conditions to be treated as Resident and ordinarily resident :
(i) He is resident in India in at least 2 out of 10 years immediately preceding the relevant
previous year, and
(ii) His stay in India is 730 days or more during 7 years immediately preceding the
relevant previous year.
Note : To be a resident in 2 out of 10 years, an individual should have fulfilled any one of
the basic conditions in each of those 2 years.
Resident but not Ordinarily Resident in India (R but NOR)
If an individual satisfies one of the basic conditions but fails to satisfy both the additional
conditions /any one additional condition, he is considered to be R but NOR.
Non-Resident in India (NR)
If an individual does not satisfy any of the basic conditions, he is considered to be Non-
Resident in India.
Thus, there can be three categories of Residential Status for an individual – Resident &
Ordinarily Resident, Resident but not ordinarily Resident & Non-resident.
Residential Status of FIRM, H.U.F. AND OTHERS (Other than company):
These will be resident when its control and management is either wholly or partly in
India and non-resident only if its control and management is wholly outside India.
Control and management signifies the controlling and directing power – decision making.
A Resident H.U.F. is considered to be R & OR only if its Karta satisfies both the additional
conditions of Section 6 (6).
Thus, a HUF can either be R & OR, R but NOR or Non-Resident. But other persons can
either be Resident or Non-Resident.
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