As per the Foreign Exchange Regulation Act, 1999 (FEMA), an individual’s residency status in India is determined by both their intention to stay in India and their duration of stay in the country.
Under FEMA, for individuals, a person is considered a resident of India if their period of residence in India exceeds 182 days during the preceding financial year (April – March). However, this calculation excludes:
An individual who has left India or is currently residing outside India, under any of the following circumstances:
An individual who has
arrived in or resides in India, except under circumstances that include:
The definition signifies that if an individual comes to India with the intention of pursuing a business, profession, vocation, employment, or any other purpose that suggests an indefinite stay in India, they will be considered a resident, even if their stay is less than 182 days in the preceding financial year. Conversely, if a person has spent more than 182 days in India in the previous financial year but has departed India with the intention of engaging in a business, profession, vocation, employment outside India, or for any other reason indicating an intention to stay outside India indefinitely, they will not be regarded as a resident of India.
Moreover, individuals who do not meet the 182-day criteria due to factors such as travel or medical reasons will still be considered residents of India for the purpose of interpreting FEMA regulations.
For information regarding the determination of residential status under the Income Tax Act, 1961,
